US refiner Phillips 66 will move forward with $3 billion plans to build a natural gas liquids fractionator and an LPG export terminal in Texas, the company said Friday.
The 100,000 b/d "Sweeny Fractionator One" will be located in Old Ocean, Texas, near the company's Sweeny refinery. It will supply purity NGL products to the petrochemicals industry and heating markets starting in the third quarter of 2015.
Y-grade (mixed NGL) supplies to the fractionator will come from nearby pipelines, including the Sand Hills Pipeline that Phillips 66 owns a one-third interest in.
The Freeport LPG export terminal, expected online in mid-2016, will be located at the site of the company's existing marine terminal in Freeport, Texas. It will have an initial export capacity of 4.4 million barrels per month, which is equivalent to eight very large gas carriers, with a ship loading rate of 36,000 barrels per hour.
Both projects will include NGL storage and additional pipelines linked to the market hub in Mont Belvieu, Texas. There will also be a 100,000 b/d de-ethanizer unit installed near the Sweeny refinery to upgrade domestic propane for export.
"Given the anticipated growth in natural gas liquids production, we see substantial advantages in having fractionation and export facilities on the Gulf Coast outside of Mont Belvieu," said Tim Taylor, executive vice president, commercial, marketing, transportation and business development. "These projects allow us to maximize our existing infrastructure and will position us for further growth."