Phillips 66 holds direct interests in three natural gas liquids (NGL) fractionators and gathering systems at strategic NGL hubs in the United States. We own: 22.5 percent of Gulf Coast Fractionators, which owns a fractionating facility in Mont Belvieu, Texas; 12.5 percent of the Enterprise Mont Belvieu fractionator; and 40 percent of the Conway fractionator, in Conway, Kansas.

Along with fractionators, Phillips 66 owns interests in several NGL gathering and interstate transmission pipeline systems. These pipelines gather and deliver raw or mixed NGL, also referred to as Y-Grade, to supply the company’s facilities at its joint-venture Borger Refinery in Texas and the fractionators in Mont Belvieu and Conway.

Phillips 66 Partners holds one-third ownership interests in the Sand Hills and Southern Hills NGL pipelines, which connect NGL production from the Eagle Ford Shale Basin, Permian Basin and Midcontinent to Texas Gulf Coast markets. DCP Midstream operates the pipelines, which began service in 2013.

Phillips 66 has supply and trading operations that manage NGL volume requirements for its refineries and fractionators.

Key Projects

During 2014, Phillips 66 began constructing Sweeny Fractionator One and the Freeport LPG Export Terminal. We’ll invest approximately $3 billion in these two projects.

The 100,000 barrel-per-day (BPD) Sweeny Fractionator One will be located close to our Sweeny Refinery in Old Ocean, Texas. Once completed, several nearby pipelines, including the Sand Hills Pipeline, will supply NGL feedstock to this fractionator. The fractionator products will be sold to petrochemical customers in the region and exported to international markets. Fractionator One is scheduled to be operating in the fall of 2015.

The LPG Export Terminal, located at our marine terminal in Freeport, Texas, will help us meet the growing global market demand for LPG products and will leverage our transportation and storage infrastructure. Our terminal will have an initial export capacity of 4.4 million barrels per month. We expect startup in the second half of 2016.

Both the fractionator and export terminal will include NGL storage and pipelines that connect to market hubs in Mont Belvieu, as well as a 100,000 barrel-per-day de-ethanizer unit to upgrade domestic propane for export. Commercially, we’ve secured long-term, fee-based commitments for the use of Sweeny Fractionator One and the export terminal.