Phillips 66 plans to spend up to $1.5 billion on infrastructure upgrades near its Houston Ship Channel facilities to serve the Permian Basin, hundreds of miles away, including natural gas liquids (NGL) fractionators, additional storage capacity and associated pipelines.

Phillips 66 Sweeny

The Houston-based operator Wednesday said it is proceeding with an expansion of its Sweeny Hub by building two 150,000 b/d fractionators in Old Ocean in Brazoria County. The project is expected to begin commercial operations in late 2020.

Sweeny now has 100,000 b/d of fractionation capacity, 200,000 b/d of liquefied petroleum gas (LPG) export capability and access to 9 million bbl gross of NGL storage capacity at the Phillips 66 Partners LP (PSXP) Clemens Caverns. NGL storage capacity is expected to grow to 15 million...