Phillips 66 has completed a $1.4 billion infrastructure upgrade near its Houston Ship Channel facilities to serve the Permian Shale and Eagle Ford Shale.

USGC NGL exports

Houston-based Phillips 66 management said operations have begun on two natural gas liquids (NGL) fractionation plants at its Sweeny Hub in Old Ocean, TX, south of Houston. With a combined capacity of 300,000 b/d, the fractionators are considered two of the largest in the world.

S&B Engineers and Constructors Ltd. completed the work this month. They were on time even as peak construction occurred during rising cases of coronavirus in the country, executives noted.

The project added the second and third fractionation plants to the original first train built for Phillips 66 in 2015.

The milestone positions Phillips “as a major player in the NGL space and the Sweeny Hub as a world-class and strategically located market alternative,” said Vice President Michael Wirkowski, who handles Major Projects for the company.

The new fractionators boost integration between Phillips 66 and joint ventures DCP Midstream LP and Chevron Phillips Chemical. DCP and Phillips 66 Partners LP’s Sand Hills Pipeline would be among the pipelines delivering raw NGL feed for processing.

Sand Hills is an NGL pipeline providing takeaway service from DCP and third-party plants in the Permian and the Eagle Ford to fractionation facilities along the Texas coast and the Mont Belvieu NGL market hub east of Houston.