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Released December 13, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Phillips 66 (NYSE:PSX) (Houston, Texas) plans to spend $2 billion in its 2023 capital program, the refining, midstream and chemical company announced last week. The capital plan includes $865 million for sustaining capital, and $1.1 billion will be used toward growth projects, about 50% of which will support lower-carbon initiatives.
In the Refining segment, $729 million in growth capital will be partly directed toward the ongoing conversion of its refinery in Rodeo, California, near San Francisco, to reduce emissions and produce lower carbon-intensity transportation fuels. The $600 million "Rodeo Renewed" project will allow for the production of more than 600 million gallons per year of renewable diesel, renewable gasoline and sustainable aviation fuel (SAF). Subscribers to Industrial Info's Global Market Intelligence (GMI) Alternative Fuel Project Database can click here for the detailed project report.
The company said it will allocate $639 million for its Midstream segment, which includes $329 million for sustaining projects and $310 million for growth projects; the growth capital "will be directed toward enhancing the company's integrated NGL (natural gas liquids) value chain from wellhead to market," according to a press release announcing the 2023 capital spend.
The expected Midstream spend includes "100% of DCP Midstream, LP's sustaining capital of $150 million and $125 million of growth capital." DCP is a joint venture between Phillips 66 and Enbridge Incorporated (NYSE:ENB) (Calgary, Alberta), of which Phillips 66 owns 43.31% after acquiring some of Enbridge's stake earlier this year. Phillips 66 has submitted a non-binding proposal to acquire all publicly held common units of DCP for cash. For more information, see Industrial Info's August 19, 2022, article - Phillips 66 Eyes Bigger Midstream Role with DCP Acquisition.
Meanwhile growth capital for two of Phillips 66's other joint ventures is projected to total $1.1 billion and will be self-funded: its refining joint venture with Cenovus Energy Incorporated (NYSE:CVE) (Calgary, Alberta), WRB Refining LP (WRB), and its chemicals joint venture with Chevron Corporation (NYSE:CVX) (San Ramon, California), Chevron Phillips Chemical Company LLC (CPChem) (The Woodlands, Texas).
WRB's capital spending will be directed to sustaining projects, crude flexibility and enhancing clean product yield, according to the press release.
Meanwhile, CPChem's growth capital will go toward the expansion of its propylene splitting capacity and alpha olefins production, but most notably, toward two world-scale petrochemical projects.
CPChem is partnering with QatarEnergy (Doha, Qatar) on the construction of a $8.5 billion integrated polymers facility in Orange, Texas. The facility, which is expected to begin operations in 2026, will include a 4.6 billion-pound-per-year ethane cracker and two 2.2 billion pound-per-year high-density polyethylene (HDPE) units, according to Phillips 66's capital announcement press release. For more information on the Texas facility, see November 17, 2022, article - CPChem, Qatar Energy Move Forward on Texas Integrated Polymers Facility.
The entities also are developing a petrochemical complex in Ras Laffan, Qatar, with a final investment decision expected in early 2023. Subscribers to Industrial Info's GMI Chemical Processing Project Database can click here for reports related to the Texas facility and here for the Qatar project reports.
Subscribers to Industrial Info's GMI project and plant databases can click here for a full list of detailed reports for projects mentioned in this article and click here for a full list of related plant profiles.
Click here for a full list of reports for active projects from Phillips 66 globally.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
In the Refining segment, $729 million in growth capital will be partly directed toward the ongoing conversion of its refinery in Rodeo, California, near San Francisco, to reduce emissions and produce lower carbon-intensity transportation fuels. The $600 million "Rodeo Renewed" project will allow for the production of more than 600 million gallons per year of renewable diesel, renewable gasoline and sustainable aviation fuel (SAF). Subscribers to Industrial Info's Global Market Intelligence (GMI) Alternative Fuel Project Database can click here for the detailed project report.
The company said it will allocate $639 million for its Midstream segment, which includes $329 million for sustaining projects and $310 million for growth projects; the growth capital "will be directed toward enhancing the company's integrated NGL (natural gas liquids) value chain from wellhead to market," according to a press release announcing the 2023 capital spend.
The expected Midstream spend includes "100% of DCP Midstream, LP's sustaining capital of $150 million and $125 million of growth capital." DCP is a joint venture between Phillips 66 and Enbridge Incorporated (NYSE:ENB) (Calgary, Alberta), of which Phillips 66 owns 43.31% after acquiring some of Enbridge's stake earlier this year. Phillips 66 has submitted a non-binding proposal to acquire all publicly held common units of DCP for cash. For more information, see Industrial Info's August 19, 2022, article - Phillips 66 Eyes Bigger Midstream Role with DCP Acquisition.
Meanwhile growth capital for two of Phillips 66's other joint ventures is projected to total $1.1 billion and will be self-funded: its refining joint venture with Cenovus Energy Incorporated (NYSE:CVE) (Calgary, Alberta), WRB Refining LP (WRB), and its chemicals joint venture with Chevron Corporation (NYSE:CVX) (San Ramon, California), Chevron Phillips Chemical Company LLC (CPChem) (The Woodlands, Texas).
WRB's capital spending will be directed to sustaining projects, crude flexibility and enhancing clean product yield, according to the press release.
Meanwhile, CPChem's growth capital will go toward the expansion of its propylene splitting capacity and alpha olefins production, but most notably, toward two world-scale petrochemical projects.
CPChem is partnering with QatarEnergy (Doha, Qatar) on the construction of a $8.5 billion integrated polymers facility in Orange, Texas. The facility, which is expected to begin operations in 2026, will include a 4.6 billion-pound-per-year ethane cracker and two 2.2 billion pound-per-year high-density polyethylene (HDPE) units, according to Phillips 66's capital announcement press release. For more information on the Texas facility, see November 17, 2022, article - CPChem, Qatar Energy Move Forward on Texas Integrated Polymers Facility.
The entities also are developing a petrochemical complex in Ras Laffan, Qatar, with a final investment decision expected in early 2023. Subscribers to Industrial Info's GMI Chemical Processing Project Database can click here for reports related to the Texas facility and here for the Qatar project reports.
Subscribers to Industrial Info's GMI project and plant databases can click here for a full list of detailed reports for projects mentioned in this article and click here for a full list of related plant profiles.
Click here for a full list of reports for active projects from Phillips 66 globally.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
