Phillips 66 plans to spend $3.6 billion on capital expenditures (capex) in 2016, an 18.1% decrease from 2015, while earmarking an additional $2 billion for an increase in the company’s share repurchase program.

The $3.6 billion capex figure excludes the Houston-based producer’s master limited partnership (MLP), Phillips 66 Partners LP (PSXP).

Phillips 66 plans to devote $2.03 billion to its midstream business in 2016 and expects to have its liquefied petroleum gas export terminal in Freeport, TX, completed by the second half of the year (see Daily GPI, Nov. 4, 2013). The terminal is expected to have 4.4 million bbl per month of export capacity.

The midstream budget also includes spending associated with expanding the Sweeny NGL (natural gas liquids) midstream hub in Texas, and for two pipeline projects in the Bakken Shale in North Dakota: the Dakota Access Pipeline and the Energy Transfer Crude Oil Pipeline (see Shale Daily, Sept. 23, 2014;Feb. 7, 2014).

Other midstream projects include additional storage capacity at the company’s Beaumont Terminal in Nederland, TX, and the proposed Bayou Bridge crude oil pipeline in Texas and Louisiana (see Shale Daily, July 31). Phillips 66 has joined Sunoco Logistics Partners LP and Energy Transfer Partners LP in a joint venture (JV) to build the pipeline from Nederland to Lake Charles, LA.

Phillips 66 plans to spend $1.22 billion on refining, $137 million on marketing and $180 on corporate costs. Capex plans for PSXP and for self-funded JVs with DCP Midstream, Chevron Phillips Chemical Co. (CPChem), and WRB Refining are to be announced later this year.

“The 2016 capital budget will fund midstream growth and enhance returns in refining,” said CEO Greg Garland. “Cash from operating activities, our MLP and a strong balance sheet allow us to fund business growth while returning capital to shareholders.”

The move to increase the stock repurchase program will bring total authorizations to $9 billion. “Since 2012, we have increased quarterly dividends by 180% while reducing share count by close to 15%,” Garland said.

Last December, Phillips 66 announced it would spend $4.6 billion on capex in 2015, an amount that included $200 million for PSXP to support organic growth projects. Including investments in the aforementioned JVs with DCP, CPChem and WRB, total capex for 2015 was expected to total $6.8 billion.