Phillips 66 stated Monday it expects a $2.4 billion finances for subsequent 12 months, consisting of $1.1 billion in sustaining capital and $1.3 billion in progress capital.
“The 2026 capital finances displays our ongoing dedication to capital self-discipline and maximizing shareholder returns”, chair and chief govt Mark Lashier stated in a web-based assertion. “We’re investing progress capital in our NGL worth chain and high-return refining tasks, whereas additionally investing sustaining capital to assist protected and dependable operations”.
Houston, Texas-based Phillips 66 expects to shell out $1.1 billion into its refining enterprise, comprising $590 million in sustaining capital and $520 million into progress tasks.
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“With the consolidation of WRB Refining, we integrated roughly $200 million of sustaining capital and $100 million of progress capital into the finances”, Lashier stated.
Phillips 66 lately acquired an extra 50 % stake in WRB Refining LP from Cenovus Power Inc for $1.4 billion, totally taking up the Wooden River and Borger refineries, as confirmed by Phillips 66 in its third quarter report October 29. Wooden River in Roxana, Illinois, has a gasoline and distillates manufacturing capability of 176,000 bpd and 140,000 bpd respectively. Borger in Borger, Texas, produces as much as 100,000 bpd of gasoline and 70,000 bpd of distillates, in line with Phillips 66.
The refining allotment for 2026 additionally features a multiyear funding on the Humber refinery to allow the manufacturing of higher-quality gasoline and develop the power’s entry to “higher-value world markets”, the corporate stated. Phillips 66 expects to begin up the mission within the second quarter of 2027. Positioned in North Lincolnshire on the English east coast, the Humber website produces as much as 95,000 barrels per day (bpd) of gasoline and 115,000 bpd of distillates, in line with Phillips 66.
The refining finances additionally consists of “over 100 low-capital, high-return tasks to enhance market seize centered on crude flexibility, feedstock optimization and clear product yield enhancements”, it stated.
In its midstream section, Phillips 66 has additionally allotted $1.1 billion for subsequent 12 months, comprising $400 million in sustaining capital and $700 million in progress capital.
Development tasks beneath the midstream finances embody the Iron Mesa gasoline processing plant in the USA Permian Basin. With a deliberate capability of 300 million cubic toes a day, the plant is predicted to begin up within the first quarter of 2027.
Additionally included is a mission to develop a pure gasoline liquids pipeline it acquired earlier this 12 months from EPIC. Anticipated to be accomplished by yearend 2026, the mission will improve capability from 225,000 bpd to 350,000 bpd and develop connectivity between producers within the Permian and Eagle Ford basins and fractionators in Corpus Christi and Sweeny.
In Corpus Christi, Phillips 66 plans to construct a 100,000-bpd fractionation facility. It expects to make a remaining funding choice 2026 and begin up the mission 2028.
In the meantime in its three way partnership Chevron Phillips Chemical Co LLC, Phillips 66 tasks $680 million in capital spending subsequent 12 months. That might comprise $200 million in sustaining capital and $480 million in progress capital.
“CPChem’s progress capital will proceed to fund the development of world-scale petrochemical services via joint ventures on the U.S. Gulf Coast and in Ras Laffan, Qatar. The services are anticipated to begin up in 2026 and early 2027, respectively”, Phillips 66 stated.
To contact the creator, e-mail jov.onsat@rigzone.com
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