Phillips 66 has announced that it plans to expand its Sweeny Hub near Old Ocean, Texas as part of a $1.5 billion project to transport and process more natural gas liquids (NGL) amid a boom in Gulf Coast petrochemicals manufacturing.
The Houston refining company plans to construct two units to process mixed natural gas liquids into separate components including ethane, propane and butane — all feedstocks used to make petrochemicals or certain types of fuel. Each unit will have the capacity to process 150,000 barrels a day.
It also plans to build additional pipelines and storage to support the expanded operations. The project is expected to start up in late 2020.
In a statement, CEO Greg Garland said the expansion will better position the facility to capitalize on booming production in the Permian Basin in West Texas. Drilling there has unleashed a steady supply of low-cost natural gas that has supported some $60 billion in petrochemicals investments along the Gulf Coast.
Caption: Phillips 66 will expand its Sweeny Hub near Old Ocean to transport and process more natural gas liquids.
Image courtesy of Ryan Holeywell