Houston-based Phillips 66 plans to pour significantly more into its capital budget next year as it expands its oil pipeline network, invests in its refineries and grows its petrochemical business.
The Houston Chronicle reports major investment is planned to expand its pipeline network and terminals. Spending on its midstream business, including pipeline and terminals, will grow to $1.6 billion, up from $1.2 billion this year. That includes an isomerization unit at its Lake Charles Refinery and a Lake Charles products pipeline, according to the company’s capital budget.
The energy company, along with its midstream and storage terminal subsidiary Philips 66 Partners, has budgeted $2.89 billion on capital projects next year — a nearly 26% jump from this year’s capital budget of $2.3 billion, according to its budget released Friday afternoon.
The company appears to be getting more serious about expanding its Gulf Coast petrochemical business, called Chevron Phillips Chemical, which it owns in a joint venture with Chevron. Its budget next year includes $290 million toward growing Chevron Phillips Chemical, which could include “a second U.S. Gulf Coast petrochemicals project for additional ethylene and derivative capacity,” the company said in a release.