02-04-2013

Phillips 66 proposes fractionator in Old Ocean, Texas

Energy manufacturer Phillips 66 today announced that it is pursuing development of a 100,000 barrel-per-day natural gas liquids (NGL) fractionator to be located in Old Ocean, Texas, close to the company’s Sweeny Refinery. The project would create more than 25 full-time jobs and hundreds of temporary construction jobs. If approved, construction is expected to begin in the first half of 2014 with startup expected by the second half of 2015.

“This project would enable us to take advantage of strong existing midstream transportation and storage infrastructure along with demonstrated operations excellence,” said Phillips 66 Chairman and CEO Greg Garland. “We see excellent market-facing opportunities to grow the natural gas liquids business, and the chance to supply purity NGLs and liquefied petroleum gas to the petrochemical industry and heating markets.”

Phillips 66 has a long history in the midstream business segment, including NGL gathering, long haul transportation, storage and fractionation.  The company owns fractionation capacity at the Gulf Coast Fractionators (GCF) and Enterprise fractionators in Mont Belvieu, Texas, as well as the Conway fractionator in Kansas. Phillips 66 is the operator of the GCF facility for the joint venture.

NGL feedstock for the Old Ocean fractionator project would be supplied by several nearby pipelines avoiding the Mont Belvieu congestion, and purified products produced by the fractionator would be marketed primarily to petrochemical customers in the region with access to Mont Belvieu.  Phillips 66 recently sent notices seeking expression of interest from potential Y-grade suppliers of NGL.

The project is currently in the engineering design phase, and the company is in the process of filing for all applicable permits.