Phillips 66 will build both its Sweeny Fractionator One and Freeport LPG Export Terminal. The 100,000-b/d Sweeny fractionator will be in Old Ocean, Tex., close to the company’s Sweeny refinery, and will supply purity NGLs to the petrochemical and heating markets. The company expects the fractionator to enter service third-quarter 2015. Phillips 66 will also install a 100,000 b/d de-ethanizer at the site to upgrade domestic propane for export.
Y-grade (mixed NGL) supply to the fractionator will come from nearby major pipelines, including the 200,000-b/d Sand Hills Pipeline, in which Phillips 66 owns a direct one-third interest. Sand Hills carries Eagle Ford shale NGL production.
The Freeport LPG export terminal will be sited at Phillips 66’s existing marine terminal in Freeport, Tex., and will have an initial export capacity of 4.4 million bbl/month, the equivalent of eight very large gas carriers. In addition to the Sweeney fractionator, Phillips 66 will be able to source LPG from its nearby Gulf Coast Fractionators site and the Enterprise Mont Belvieu fractionator (OGJ Online, Oct. 31, 2013). The terminal will load ships at 36,000 bbl/hr, starting mid-2016.
Each project will include NGL storage and pipelines with connectivity to market hubs in Mont Belvieu, Tex. Site preparation is under way for the fractionator. Phillips 66 has also ordered critical equipment and begun expanding supporting infrastructure. Work on the LPG export terminal is pending regulatory approval.
The combined price of the two projects is more than $3 billion.