With a $1.7 billion capital budget for 2021, Phillips 66 will prioritize completion of in-progress projects and advance investments in renewable fuels, the company said Dec. 14.
In the midstream segment, the company plans to invest $610 million, including $300 million of Phillips 66 Partners adjusted capital spending. The budget is directed toward completing near-term committed and optimization projects, focusing on pipeline operations and progressing construction of Sweeny Frac 4 and the C2G Pipeline.
The refining capital budget includes $521 million of sustaining capital for reliability, safety, and environmental projects. The budget also will include $255 million to fund high-return, quick-payout projects to enhance margins by improving clean product yields and reducing feedstock costs, as well as investments to position the company for a lower carbon future, the company said. The budget includes pre-construction engineering and design costs related to a plan to reconfigure the San Francisco refinery in Rodeo, California, to produce renewable fuels (OGJ Online, Aug. 13, 2020). Upon expected completion in early 2024, the facility would have over 50,000 b/d of renewable fuel production capacity.
Phillips 66’s proportionate share of capital spending by joint ventures Chevron Phillips Chemical Co. LLC (CPChem), WRB Refining LP, and DCP Midstream LLC is expected to be $707 million. Capital spending by CPChem and DCP Midstream is expected to be self-funded.
CPChem’s growth capital will fund expansion of its normal alpha olefins production, optimization and debottleneck opportunities in the olefins and polyolefins chains, as well as continuing development of petrochemicals projects in the US Gulf Coast and Qatar.
WRB’s capital spending will be directed to sustaining projects, crude flexibility and distillate yield enhancement.