Commercial, Licensing & Power Generation


Commercial

Our Commercial organization manages the company’s worldwide commodity portfolio. It partners with our refining business to optimize our assets by procuring feedstocks with highest economic value, minimizing laid-in cost and managing system inventory. The commercial organization also partners with the marketing business to ensure dependable supply while managing terminalling, throughput, exchange and other commercial agreements. This frees up Refining and Marketing organizations to focus on operational performance. It also provides market intelligence used to identify location, time and quality arbitrage opportunities that generate attractive incremental returns. Commercial partners with our Midstream business by providing supply and trading operations to manage NGL volume requirements for our refineries and wholly-owned fractionators, and actively trades these NGL at the main U.S. hubs.

In 2011, the Commercial organization successfully positioned the business to capture opportunities and respond to the challenges posed by the wide price differential that developed between WTI and Brent oil, the Libyan civil unrest and several asset dispositions. The organization also enhanced its presence in several regions including Canada, Europe, and Latin and South America by securing additional storage, transportation and/or blending capabilities.

Licensing

Phillips 66’s proprietary E-Gas™ Technology converts petroleum coke, coal or other low-value hydrocarbon feedstocks into high-value synthesis gas used for a slate of products, including power, substitute natural gas (SNG), hydrogen and chemicals. Phillips 66 licenses the E-Gas™ Technology to third parties, including the SG Solutions’ Wabash River facility, Mesaba Energy Project in Minnesota, Lima Energy in Ohio, Mississippi Gasification LLC and POSCO’s Gwangyang coal-to-SNG project in Korea. Phillips 66 also is pursuing several additional licensing opportunities, primarily in Asia and North America.

Power Generation

The Phillips 66 power business consists of a cogeneration plant adjacent to its’ Sweeny refinery. Other smaller cogeneration facilities in the Phillips 66 portfolio are included within the assets of the refineries that they support.

Sweeny Cogeneration, L.P.

Phillips 66 owns a 50 percent operating interest in Sweeny Cogeneration, L.P., located within the Sweeny Refinery. The joint venture’s 440-megawatt facility provides steam and electricity to the Sweeny Refinery, as well as selling excess power under a long-term sales agreement.