Phillips 66 Announced $2.4B Budget, Targets NGL Growth

SECAUCUS, NJ (DTN) – Phillips 66 announced Monday (12/15) a $2.4 billion capital budget for its 2026 fiscal year, with $1.3 billion for growth projects that will notably boost gas processing capacity by 300 million cubic feet per day (MMcfd).

Midstream operations will be allocated $700 million in growth capital to advance the integrated Natural Gas Liquids (NGL) wellhead-to-market strategy, focusing on increasing gas processing, pipeline capacity, and fractionation across key gas basins.

This investment includes the Iron Mesa gas processing plant, a 300 MMcfd facility in the Permian Basin expected to begin initial operations early in the first quarter of 2027.

The budget also funds the expansion of the Coastal Bend NGL pipeline, increasing capacity from 225,000 bpd to 350,000 bpd. This infrastructure enhancement improves connectivity between the Permian and Eagle Ford basins to fractionators in Corpus Christi and Sweeny.

Additionally, Phillips 66 is proposing a new fractionator in Corpus Christi to add 100,000 bpd of NGL fractionation capacity. A final investment decision for this facility is anticipated in early 2026, with completion planned by 2028, which would increase capacity to move Y-grade and purity products between Corpus Christi, Sweeny, and Mont Belvieu.

In refining, the company plans to invest $520 million in growth projects aimed at producing higher-quality gasoline to facilitate greater access to valuable global markets.

The Humber gasoline quality improvement project, a multiyear refining investment, is particularly targeted for startup in the second quarter of 2027.

Refining growth capital is also directed at over 100 low-capital, high-return projects focused on operational improvements centered on crude flexibility, feedstock optimization, and clean product yield enhancements.

In petrochemicals, Phillips 66 is allocating $480 million for its CPChem joint venture, which aims to build two new facilities: one slated to begin construction on the U.S. Gulf Coast next year (2026) and the second in Qatar in early 2027.