Phillips 66 announces 2019 capital programme

The Phillips 66 capital budget, excluding Phillips 66 Partners, is US$2.3 billion. The Phillips 66 Partners capital budget net of US$303 million expected cash capital contributions from noncontrolling interests (adjusted capital) is US$601 million.

In the Midstream segment, the adjusted capital budget is US$1.6 billion, including US$1.4 billion of adjusted growth capital. This adjusted capital budget includes US$601 million for Phillips 66 Partners, and reflects expected joint venture-level financing to fund a portion of the Gray Oak Pipeline construction.

Midstream growth capital at Phillips 66 includes 300 000 bpd of additional fractionation capacity at the Sweeny Hub, as well as ongoing expansion of the Beaumont Terminal and pipeline investments providing integration across our value chain. Growth capital at Phillips 66 Partners supports organic projects, including the Gray Oak Pipeline, South Texas Gateway Terminal, Clemens Caverns expansion, an isomerisation unit at the Phillips 66 Lake Charles Refinery, and the Lake Charles products pipeline.

Phillips 66 plans US$923 million of capital spending in Refining, with US$512 million for reliability, safety and environmental projects. Refining growth capital of US$411 million is for high-return projects to enhance the yield of higher-value products, including an upgrade of the fluid catalytic cracking unit at the Sweeny Refinery, as well as other low-capital, quick-payout projects.

Phillips 66’s proportionate share of capital spending by joint ventures Chevron Phillips Chemical Company LLC (CPChem), DCP Midstream LLC (DCP Midstream) and WRB Refining LP (WRB) is expected to be US$1.2 billion. Including these equity affiliates, the company’s total 2019 adjusted capital programme is projected to be US$4.1 billion.

Phillips 66’s expected share of CPChem’s capital spending is US$572 million, including US$282 million of sustaining capital. CPChem’s growth capital will fund continuing development of a second US Gulf Coast petrochemicals project for additional ethylene and derivative capacity, as well as debottleneck opportunities on existing units. Phillips 66’s expected share of DCP Midstream’s capital spending is US$505 million, reflecting growth projects such as the Gulf Coast Express Pipeline, DJ Basin gas processing plants, and NGL pipeline expansions. Phillips 66’s expected share of WRB’s capital spending is US$165 million, including US$78 million of sustaining projects. Capital spending by these three major joint ventures is expected to be self-funded.

Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/17122018/phillips-66-announces-2019-capital-programme/