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Strategic midstream capacity enhancing connectivity from US production basins to Gulf Coast markets.
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Phillips 66 has reached another major milestone in its long-term strategy to build a world-class, wellhead-to-market NGL value chain with the successful integration of EPIC NGL, now renamed Coastal Bend.
Why it matters: These highly integrated assets directly connect Permian production to Gulf Coast refiners, petrochemical facilities and export markets, contributing significant scale to the company’s strategic footprint, including:
- Two fractionators with 170,000 barrels per day (MBD) capacity near Corpus Christi.
- Approximately 350 miles of purity product distribution pipelines.
- A nearly 885-mile NGL pipeline (175 MBD) linking the Delaware, Midland and Eagle Ford basins to fractionation complexes and the Phillips 66 Sweeny Hub.
- A pipeline segment expanded to 225 MBD, with a sanctioned second expansion to 350 MBD underway.
After announcing and closing the acquisition last year, the company has fully integrated people, systems and assets into the Phillips 66 midstream organization.
“This achievement is a story of our people, our execution and our ability to connect assets, teams and systems into one cohesive, high-performing enterprise.”
Don Baldridge, Phillips 66 EVP, midstream and chemicals
This effort strengthened the midstream organization by bringing in additional talent from the EPIC operating entity, adding technical and operational expertise across long‑haul NGL pipelines, fractionation and purity product systems. Cross‑functional teams in HR, IT, operations and field services coordinated to ensure a smooth transition with no disruption to business continuity.
Enhanced optionality
“Together, these assets strengthen our systemwide optionality, enabling us to direct molecules where they create the most value — from the Permian to the Sweeny Hub to global export markets,” said Bill Johnson, SVP, midstream operations.
Digital systems alignment
System integration was also a major success. Coastal Bend’s digital systems were fully aligned with the Phillips 66 operating environment ahead of schedule, supported by disciplined execution.
Efficiency gains
“This integration was a cross‑functional effort in which our teams worked seamlessly together to deliver meaningful improvements in efficiency, system reliability and overall user experience,” said Tandra Perkins, EVP, chief digital and administrative officer.
In addition to aligning Coastal Bend’s digital systems with the Phillips 66 operating environment ahead of schedule, the integration also generated measurable value through improved processes, strengthened system performance and smoother field‑to‑office workflows.
The efficiencies are expected to continue growing as Coastal Bend becomes even more embedded within the broader Phillips 66 NGL platform, supporting long‑term value creation and operational excellence across Midstream.
Coastal Bend’s integration complements future growth projects.
- New fractionation capacity: A proposed 100 MBD fractionator in Corpus Christi to improve flexibility in Y-grade and purity product placement between Corpus Christi, Sweeny and Mont Belvieu. A final investment decision is expected in early 2026, with completion anticipated in 2028.
- Pipeline expansion underway: The Coastal Bend pipeline expansion will increase capacity from 225 MBD to 350 MBD and enhance connectivity between P66’s growing committed production in the Permian and Eagle Ford basins and the company’s fractionation assets in Corpus Christi and Sweeny. The expansion is expected to be completed in the fourth quarter of 2026.
A multiyear strategy is taking shape
The integration of DCP Midstream, Pinnacle and now Coastal Bend reflects a disciplined, multiyear strategy to assemble one of North America’s strongest, most integrated NGL systems.
Expanding capacity in the Permian
Through the acquisition of Pinnacle, Phillips 66 brought online Dos Picos II last year, a 220 million standard cubic feet per day (MMscfd) gas processing plant in the Permian Basin, further enhancing the company’s processing platform and increasing total throughput capacity from the Pinnacle-acquired assets to 440 MMscfd.
Positioned for continued growth
This expanded platform positions Phillips 66 for continued growth in the Permian, complemented by Iron Mesa, a new 300 MMscfd processing plant currently under construction, along with long-haul pipeline and fractionation expansions supporting the broader NGL value chain.
Turning strategy into results
“The successful integration of Coastal Bend, building on the strong foundation established through prior acquisitions, demonstrates the depth of Phillips 66’s operating discipline, the strength of our people, and our long-term commitment to a resilient, differentiated NGL value chain,” Baldridge said. “This is a clear story of growth, driven by the expertise, collaboration, and execution of our teams, who consistently turn assets into a fully integrated, high-performing system.”