May 18 (Reuters) – Refiner Phillips 66 said on Monday it would move ahead with the Zeus Gas Plant in the Permian Basin and a third Coastal Bend Fractionator in Texas, expanding its network to capture growing volumes of gas and natural gas liquids from the top U.S. shale field.
Shares of the company were up 2.3% in premarket trading.
The Zeus Gas Plant will have the capacity to process 300 million cubic feet per day of gas and will include the new Midland Express pipeline, the company said.
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The roughly 45-mile, 20-inch pipeline will connect Phillips 66’s Permian Basin gathering systems and move up to 230 million cubic feet per day of raw natural gas from the field.
The third Coastal Bend Fractionator, previously called Corpus Christi Fractionator, will have a capacity of 100,000 barrels per day.
Both projects are expected to start operations in 2028.
A fractionator separates mixed natural gas liquids into individual products such as ethane, propane and butane, allowing them to be marketed, transported or exported separately.
The projects are expected to support rising production from the Permian Basin by adding gas processing and NGL fractionation capacity. Phillips 66 said they would help move growing volumes through its integrated system and connect supply to downstream assets and premium markets.
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Phillips 66 has been pushing to expand its midstream footprint as rising Permian Basin production drives demand for more gas processing, pipeline and natural liquids infrastructure.
Setting up the Zeus Gas Plant and the third Coastal Bend Fractionator fall within the range of the company’s previously announced capital spending plan of $2.0 billion to $2.5 billion.
Reporting by Dharna Bafna in Bengaluru; Editing by Leroy Leo
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