Phillips 66 to Spend $2.3 Billion in 2018 Capex

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Phillips 66 (NYSE:PSX) (Houston, Texas) has announced its 2018 capital budget of $2.3 billion, which includes $1.4 billion in growth projects and $900,000 of sustaining capital. The budget is up from 2017's capital expenditures of $2 billion. Industrial Info is tracking $2 billion in active Phillips 66 projects.

The company is allocating $1.2 billion to its Midstream segment, which includes additional fractionation capacity in the U.S. Gulf Coast region and pipeline projects. At its refinery in Old Ocean, Texas, the company plans to add a second 100,000-barrel-per-day (BBL/d) natural gas liquids (NGL) fractionator to supply the petrochemical and heating markets. The project has an estimated total investment value of $100 million and will treat and fractionate demethanized natural gas into ethane, propane, isobutane, normal butane and natural gasoline. Construction is planned to kick off next summer and be completed in early 2019. For more information, see Industrial Info's project report.

Phillips 66 remains in the early planning stages for constructing a third fractionator at the facility, although this would be a few years out. For more information, see Industrial Info's project report.

Among the pipeline projects planned by Phillips 66 is Phase II of its joint venture Bayou Bridge Pipeline with Energy Transfer Partners (NYSE:ETP) (Dallas, Texas). The project, which has an estimated total investment value of $250 million, will include construction of 162 miles of 24-inch pipeline to carry crude oil from Lake Charles, Louisiana, to St. James, Louisiana. The pipeline will carry 280,000 BBL/d, but is expandable to 480,000 BBL/d. Construction is expected to be completed in the first half of next year. For more information, see Industrial Info's project report.

Also on the books is the Rodeo crude oil pipeline in the Midland, Texas, area. The pipeline will carry crude oil from the Delaware Basin to receipt points in Wink, Odessa and Midland. The pipeline initially will carry 130,000 BBL/d and will be expandable up to 450,000 BBL/d. The $150 million project is expected to be completed in the second half of next year. For more information, see Industrial Info's project report.

Included in the company's Midstream budget is the addition of an isomerization unit at its Lake Charles Refinery in Louisiana. The $100 million project is expected to kick off next year and be completed in 2020. The 10,000-BBL/d naphtha isomerization unit will produce high-octane gasoline blendstock. Phillips 66 is expected to select an engineering, procurement and construction firm for the project early next year. For more information, see Industrial Info's project report.

The company plans $827 million in capital spending in its Refining segment, including $286 million in growth projects, which are geared toward "high-return, quick payout projects primarily to increase clean project yields," according to a Phillips 66 press release. Among the refinery projects planned to kick off next year is the modernization of the fluid catalytic cracker unit (FCCU) at its Bayway Refinery in Linden, New Jersey. The 150,000-BBL/d FCCU will be revamped to increase gasoline yields by 4,000 BBL/d and reduce emissions. Jacobs Engineering Group Incorporated (NYSE:JEC) (Dallas, Texas) is performing engineering on the $150 million project, which is expected to be completed in the second quarter of next year. For more information, see Industrial Info's project report.

Phillips 66 said it expected its share in Chevron Phillips Chemical Company LP (The Woodlands, Texas), its chemicals joint venture with Chevron Corporation (NYSE:CVX) (San Ramon, California), to be $398 million, a decrease of 45% from 2017 due to the completion of new polyethylene units at the company's facility in Old Ocean. For more information see November 13, 2017, article - Chevron Phillips Chemical Celebrates Startup of Texas Polyethylene Units.

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.