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Released November 03, 2020 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--This year has not been good for the Oil & Gas sector, from upstream to midstream to downstream. Like several other petroleum-oriented companies, Phillips 66 (NYSE:PSX) (Houston, Texas) took measures earlier this year to curb spending, cancelling some projects and putting off others. The company expects to exceed its $500 million in cost reductions and $700 million in consolidated capital spending reductions that it announced earlier. Despite these reductions, the company continued working on a few high-profile projects, some of which have been recently completed.
In the company's third-quarter earnings conference call, Phillips 66 Chief Executive Officer Greg Garland gave an update on some of the company's projects, including two fractionators at its Sweeny Hub facility in Old Ocean, Texas. "We're executing our growth strategy and achieved a major milestone with the completion of the Sweeny Hub Phase 2 expansion," said Garland. "We completed the two new 150,000-barrel-a-day (BBL/d) fractionators at the Sweeny Hub, bringing the site's total fractionation capacity to 400,000 barrels per day. Frac 2 reached full rates in September, and Frac 3 started operations in October. Both fractionators have operated at rates exceeding design capacity." Construction on both fractionators began in 2018. A possible fourth fractionator could be built, but this project was delayed earlier this year due to the COVID-19 pandemic, and the anticipated start date was pushed out by more than a year. For more information, see Industrial Info's project reports on Frac 2, Frac 3 and Frac 4.
Wrapped up in the third quarter was the South Texas Gateway terminal on the Texas Gulf Coast near Corpus Christi. The project was built in partnership with Buckeye Partners LP (NYSE:BPL) (Houston) and Marathon Petroleum Corporation (NYSE:MPC) (Findlay, Ohio). The crude oil loading and unloading facility contains 18 400,000-barrel storage tanks and two deepwater vessel docks capable of berthing very large crude carriers (VLCCs). The project kicked off last summer.
Garland said, "At the South Texas Gateway Terminal, the first stock and 5.1 million barrels of storage capacity have been commissioned. Terminal operations are expected to ramp up through the end of this year as additional phases of construction are finished. We expect the project to be completed in the first quarter of 2021 with a total storage capacity of 8.6 million barrels and up to 800,000 BBL/d of export capacity." An expansion to bring total site storage to 10 million barrels also could be in the works. For more information, see Industrial Info's project reports on the grassroot project and proposed expansion. Phillips 66 owns 25% of the terminal.
Phillips 66 also is taking steps to have a greener footprint. Garland said, "Recently, we announced plans to reconfigure our San Francisco Refinery in Rodeo, California, into the world's largest renewable fuels facility to meet the growing demand for renewable energy. The plant will no longer produce fuels from crude oil, but instead, we'll have the flexibility to run used cooking oil, fats, greases and other feedstocks." Upon completion in 2024, the facility will have more than 50,000 BBL/d of renewable fuels production capacity. Garland said the project was expected to reduce the refinery's greenhouse gas emissions by 50%. For more information, see Industrial Info's project report.
Other Phillips 66 refining projects include the upgrade of a 26,000-BBL/d fluid catalytic cracking unit at its refinery in Ponca City, Oklahoma, to improve yields of gasoline, propylene, butylene and isobutene. The project initially was planned to kick off this year, but due to COVID-19, the start date is now set for early next year. For more information, see Industrial Info's project report.
Phillips 66 reported a third-quarter net loss of $799 million, compared to net income of $712 million last year. This year's results included special items totaling $798 million, including impairments related to the planned conversion of the California refinery and the cancellation of the Red Oak Pipeline project. (Click here for project reports.)
Phillips 66's capital spending in the just-passed quarter was $549 million. Garland said the company's capital program for 2021 would be announced in December.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
In the company's third-quarter earnings conference call, Phillips 66 Chief Executive Officer Greg Garland gave an update on some of the company's projects, including two fractionators at its Sweeny Hub facility in Old Ocean, Texas. "We're executing our growth strategy and achieved a major milestone with the completion of the Sweeny Hub Phase 2 expansion," said Garland. "We completed the two new 150,000-barrel-a-day (BBL/d) fractionators at the Sweeny Hub, bringing the site's total fractionation capacity to 400,000 barrels per day. Frac 2 reached full rates in September, and Frac 3 started operations in October. Both fractionators have operated at rates exceeding design capacity." Construction on both fractionators began in 2018. A possible fourth fractionator could be built, but this project was delayed earlier this year due to the COVID-19 pandemic, and the anticipated start date was pushed out by more than a year. For more information, see Industrial Info's project reports on Frac 2, Frac 3 and Frac 4.
Wrapped up in the third quarter was the South Texas Gateway terminal on the Texas Gulf Coast near Corpus Christi. The project was built in partnership with Buckeye Partners LP (NYSE:BPL) (Houston) and Marathon Petroleum Corporation (NYSE:MPC) (Findlay, Ohio). The crude oil loading and unloading facility contains 18 400,000-barrel storage tanks and two deepwater vessel docks capable of berthing very large crude carriers (VLCCs). The project kicked off last summer.
Garland said, "At the South Texas Gateway Terminal, the first stock and 5.1 million barrels of storage capacity have been commissioned. Terminal operations are expected to ramp up through the end of this year as additional phases of construction are finished. We expect the project to be completed in the first quarter of 2021 with a total storage capacity of 8.6 million barrels and up to 800,000 BBL/d of export capacity." An expansion to bring total site storage to 10 million barrels also could be in the works. For more information, see Industrial Info's project reports on the grassroot project and proposed expansion. Phillips 66 owns 25% of the terminal.
Phillips 66 also is taking steps to have a greener footprint. Garland said, "Recently, we announced plans to reconfigure our San Francisco Refinery in Rodeo, California, into the world's largest renewable fuels facility to meet the growing demand for renewable energy. The plant will no longer produce fuels from crude oil, but instead, we'll have the flexibility to run used cooking oil, fats, greases and other feedstocks." Upon completion in 2024, the facility will have more than 50,000 BBL/d of renewable fuels production capacity. Garland said the project was expected to reduce the refinery's greenhouse gas emissions by 50%. For more information, see Industrial Info's project report.
Other Phillips 66 refining projects include the upgrade of a 26,000-BBL/d fluid catalytic cracking unit at its refinery in Ponca City, Oklahoma, to improve yields of gasoline, propylene, butylene and isobutene. The project initially was planned to kick off this year, but due to COVID-19, the start date is now set for early next year. For more information, see Industrial Info's project report.
Phillips 66 reported a third-quarter net loss of $799 million, compared to net income of $712 million last year. This year's results included special items totaling $798 million, including impairments related to the planned conversion of the California refinery and the cancellation of the Red Oak Pipeline project. (Click here for project reports.)
Phillips 66's capital spending in the just-passed quarter was $549 million. Garland said the company's capital program for 2021 would be announced in December.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
