Phillips 66 is pursuing development of a 100,000 bpd natural
gas liquids (NGL) fractionator to be located in Old Ocean,
Texas, close to the companys Sweeny refinery,
officials said on Wednesday.
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
This project would enable us to take
advantage of strong existing midstream transportation and
storage infrastructure along with demonstrated operations
excellence, said Phillips 66 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
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
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 said it 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.