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