Phillips 66 Sets $1.6 Billion Midstream Budget for 2019

Phillips 66 announced that it has set a $2.3 billion capital budget for 2019 and will direct the bulk of that spending to midstream growth projects.

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

“We are building out our integrated Midstream infrastructure network, including pipelines, export facilities, and fractionation in support of growing hydrocarbon production in the key domestic shale plays," said Phillips 66 Chairman and CEO Greg Garland.

Growth capital at Phillips 66 Partners supports projects including the Gray Oak Pipeline, South Texas Gateway Terminal, Clemens Caverns expansion, an isomerization unit at the Phillips 66 Lake Charles Refinery, and the Lake Charles products pipeline.

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

Phillips 66 said its expected $572 million share of CPChem’s capital spending includes $290 million in growth capital to expand Gulf Coast ethylene and derivative capacity and debottleneck existing units. Phillips 66’s expected share of DCP Midstream’s capital spending is $505 million, reflecting growth projects such as the Gulf Coast Express Pipeline, DJ Basin gas processing plants, and NGL pipeline expansions.

Midstream growth capital at Phillips 66 includes 300,000 barrels per day of additional fractionation capacity at the Sweeny Hub, as well as ongoing expansion of the Beaumont Terminal and pipeline investments.

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