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Released November 01, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Hurricane Ida, which hit the Louisiana coast in late August, is still causing a headache for refining, chemicals and midstream company Phillips 66 (NYSE:PSX) (Houston, Texas). The hurricane took the company's Alliance Refinery in Belle Chase, 25 miles south of New Orleans, offline, and the facility is expected to remain shut for the remainder of this year. Phillips 66's Refining segment reported a $1.3 billion impairment charge due to the shutdown for the just-ended third quarter.
Phillips 66 reported overall third-quarter earnings of $402 million, compared with a net loss of $799 million in third-quarter 2020, when the pandemic delivered a severe hit to refiners and midstream companies, and income of $712 million in third-quarter 2019. Adjusted third-quarter earnings for this year were $1.4 billion, excluding special items, including the Alliance closure.
As the company works to get the refinery back online, it is progressing with other projects, such as a fourth fractionator at its Sweeny Hub in Old Ocean, Texas. In Phillips 66's recent third-quarter earnings conference call with analysts, President and Chief Operating Officer Mark Lashier spoke of this and other projects. "In Midstream," said Lashier, "we continued to advance Frac 4 at the Sweeny Hub, with construction approximately one-third complete and about 70% of the capital already spent." The 150,000-barrel-per-day (BBL/d) fractionator will bring the complex's total fractionation capacity to 550,000 BBL/d. The project was placed on hold in 2020 when the pandemic struck but has subsequently resumed construction, with an expected completion date of summer 2022. Subscribers to Industrial Info's Global Market Intelligence (GMI) Refining Project Database can click here for the detailed project report.
Phillips 66 also is joining the list of refiners converting some of their plants to produce renewable diesel, with a project at its 120,000-BBL/d refinery in Rodeo, California, near San Francisco. Lashier said, "We continue to progress Rodeo Renewed, which is expected to be completed in early 2024, subject to permitting and approvals. Upon completion, Rodeo will have over 50,000 BBL/d of renewable fuel production capacity. The conversion will reduce emissions from the facility and produce lower-carbon transportation fuels." Phillips 66 recently announced the goal to reduce Scope 1 (direct greenhouse gas emissions) and Scope 2 (indirect emissions associated with the purchase of power, steam, cooling, etc.) emissions by 30% from 2019 levels by 2030, and Scope 3 emissions (indirect emissions from other associated companies) by 15%. Subscribers can click here for the Rodeo Renewed project report.
The company's Chemicals segment reported income of $631 million, compared with $231 million in the prior-year quarter. Phillips 66's Chemicals segment reflects the company's investment in Chevron Phillips Chemical Company (The Woodlands, Texas) (CPChem), its joint venture with Chevron Corporation (NYSE:CVX) (San Ramon, California). CPChem is looking to expand its petrochemical production capacity with a project at still a to-be-determined site along the U.S. Gulf Coast and another in Qatar. Subscribers to Industrial Info's Chemical Processing Project Database can click here for the report on the Gulf Coast project and here for the Qatar project.
In addition, CPChem is expanding its alpha-olefins business with a world-scale unit to produce 1-hexene at the Sweeny Hub, which will produce 266,000 tons per year. S&B Engineers and Constructors Limited (Houston) is providing engineering, procurement and construction services on the project, which is expected to be completed in late 2023. Subscribers can click here for the project report.
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.
Phillips 66 reported overall third-quarter earnings of $402 million, compared with a net loss of $799 million in third-quarter 2020, when the pandemic delivered a severe hit to refiners and midstream companies, and income of $712 million in third-quarter 2019. Adjusted third-quarter earnings for this year were $1.4 billion, excluding special items, including the Alliance closure.
As the company works to get the refinery back online, it is progressing with other projects, such as a fourth fractionator at its Sweeny Hub in Old Ocean, Texas. In Phillips 66's recent third-quarter earnings conference call with analysts, President and Chief Operating Officer Mark Lashier spoke of this and other projects. "In Midstream," said Lashier, "we continued to advance Frac 4 at the Sweeny Hub, with construction approximately one-third complete and about 70% of the capital already spent." The 150,000-barrel-per-day (BBL/d) fractionator will bring the complex's total fractionation capacity to 550,000 BBL/d. The project was placed on hold in 2020 when the pandemic struck but has subsequently resumed construction, with an expected completion date of summer 2022. Subscribers to Industrial Info's Global Market Intelligence (GMI) Refining Project Database can click here for the detailed project report.
Phillips 66 also is joining the list of refiners converting some of their plants to produce renewable diesel, with a project at its 120,000-BBL/d refinery in Rodeo, California, near San Francisco. Lashier said, "We continue to progress Rodeo Renewed, which is expected to be completed in early 2024, subject to permitting and approvals. Upon completion, Rodeo will have over 50,000 BBL/d of renewable fuel production capacity. The conversion will reduce emissions from the facility and produce lower-carbon transportation fuels." Phillips 66 recently announced the goal to reduce Scope 1 (direct greenhouse gas emissions) and Scope 2 (indirect emissions associated with the purchase of power, steam, cooling, etc.) emissions by 30% from 2019 levels by 2030, and Scope 3 emissions (indirect emissions from other associated companies) by 15%. Subscribers can click here for the Rodeo Renewed project report.
The company's Chemicals segment reported income of $631 million, compared with $231 million in the prior-year quarter. Phillips 66's Chemicals segment reflects the company's investment in Chevron Phillips Chemical Company (The Woodlands, Texas) (CPChem), its joint venture with Chevron Corporation (NYSE:CVX) (San Ramon, California). CPChem is looking to expand its petrochemical production capacity with a project at still a to-be-determined site along the U.S. Gulf Coast and another in Qatar. Subscribers to Industrial Info's Chemical Processing Project Database can click here for the report on the Gulf Coast project and here for the Qatar project.
In addition, CPChem is expanding its alpha-olefins business with a world-scale unit to produce 1-hexene at the Sweeny Hub, which will produce 266,000 tons per year. S&B Engineers and Constructors Limited (Houston) is providing engineering, procurement and construction services on the project, which is expected to be completed in late 2023. Subscribers can click here for the project report.
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.
