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Phillips 66 to expand Sweeny Hub

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Hydrocarbon Engineering,

Phillips 66 today announced it is proceeding with an expansion of the company’s Sweeny Hub near Old Ocean, Texas, US.

The project includes the construction of two 150 000 bpd natural gas liquids (NGL) fractionators in Old Ocean, Texas, additional NGL storage capacity, and associated pipeline infrastructure. The project is expected to cost up to US$1.5 billion and begin commercial operations in late 2020.

“We are pleased to move forward with the Sweeny Hub expansion, a key part of our midstream growth strategy that further optimises our integrated NGL value chain,” said Greg Garland, Chairman and CEO of Phillips 66. “The Sweeny Hub is strategically positioned to provide fractionation capacity for rapidly growing Permian Basin NGL production and access to US Gulf Coast petrochemical, fuels and LPG export markets.”

Supply agreements have been secured for Y-grade NGL feedstock, including an agreement with DCP Midstream LP which has an option to acquire up to a 30% ownership interest in the new fractionators.

“The combination of DCP’s gathering, processing and pipeline services with Phillips 66’s fractionation, storage and export capabilities offers Permian producers a full-service wellhead to market solution,” said Garland.

The Sweeny Hub currently has 100 000 bpd of fractionation capacity through Phillips 66 Partners’ Sweeny Fractionator One, 200 000 bpd of LPG export capability, and access to 9 million barrels of gross NGL storage capacity at the nearby Phillips 66 Partners’ Clemens Caverns. Upon completion of the expansion, the Sweeny Hub will have 400 000 bpd of NGL fractionation capacity and access to 15 million barrels of total storage capacity. The expansion is expected to result in more than 25 new full-time jobs and approximately 2000 construction-related jobs in Brazoria County.

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