Phillips 66 expects a 2022 capital program of $1.9 billion. The plan includes $992 million for sustaining capital and $916 million for growth capital. Some 45% of growth capital supports lower-carbon opportunities, the operator said in a release Dec. 10.
The midstream capital plan of $703 million, which includes Phillips 66 Partners, comprises $426 million for growth projects and $277 million for sustaining projects. Growth capital will be directed toward completing construction of Sweeny Frac 4 and repayment of its 25% share of the Bakken Pipeline joint venture’s debt due in 2022. Midstream growth capital also includes Emerging Energy opportunities to advance the company’s lower-carbon efforts.
In refining, the operator plans to invest $896 million, with $488 million for reliability, safety, and environmental projects. Refining growth capital of $408 million is primarily for the reconfiguration of the San Francisco refinery in Rodeo, Calif., as part of the Rodeo Renewed project. Upon expected completion early 2024, the project will initially have over 50,000 b/d of renewable fuel production capacity. The conversion will reduce emissions from the facility and produce lower-carbon transportation fuels. Refining growth capital will also support opportunities for high-return, low-capital projects.
Phillips 66’s proportionate share of capital spending by joint ventures Chevron Phillips Chemical Co. LLC (CPChem), WRB Refining LP (WRB) and DCP Midstream LLC (DCP Midstream) is expected to total $1.1 billion and 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 enhancing clean product yield.
Including Phillips 66’s proportionate share of capital spending for these large ventures, the company’s total 2022 capital program is projected to be $3.0 billion.