Phillips 66 to build LPG export terminal in Texas
Phillips 66 is planning to develop a liquefied petroleum gas (LPG) export terminal in Freeport, Texas, the company announced on Thursday.
The new terminal is intended to help meet growing global market demand for US-supplied products.
We are looking at a rapidly changing energy landscape that presents excellent opportunities in the natural gas liquids (NGL) piece of our midstream business, said Tim Taylor, Phillips 66 executive vice president for commercial, marketing, transportation and business development.
A liquefied petroleum gas terminal downstream of our Sweeny complex supports our growth strategy in midstream and builds on our strong record of operating excellence, and there are attractive markets outside of the United States for products like butane and propane," he added.
The proposed LPG export terminal would provide 4.4 million bbl/month of LPG export capacity, the equivalent of eight very large gas carriers (VLGC). It would be located at the site of the companys existing marine terminal in Freeport and utilize existing Phillips 66 midstream, transportation and storage infrastructure to supply petrochemical, heating and transportation markets globally.
Phillips 66 says it is the only independent energy company with leading segments in midstream, chemicals, refining and marketing and specialties. Its midstream segment transports crude oil, refined products, natural gas and NGL. It also gathers natural gas and NGL, and through its midstream NGL business processes these feedstocks to power businesses, heat homes and provide raw materials to the petrochemical industry.
Phillips 66 owns fractionation capacity at Gulf Coast Fractionators (GCF) and the Enterprise Mont Belvieu fractionator in Texas, as well as the Conway fractionator in Kansas. Phillips 66 is the operator of the GCF facility.
The Freeport LPG export terminal would be supplied with LPG from the Mont Belvieu area and from Phillips 66s Sweeny complex at Old Ocean, Texas, including its recently announced Sweeny Fractionator One, which is expected to start up by the second half of 2015.
The export terminal project is currently in the engineering design phase, which includes the process of filing for all applicable permits. Final project approval is anticipated during the first half of 2014, with startup planned for the middle of 2016.
From the Archive