Phillips 66 has confirmed plans to proceed with the Zeus Gas Plant in the Permian Basin and a third Coastal Bend Fractionator in Robstown, Texas.
Both the projects are scheduled to begin operations in 2028.
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These developments form part of the company’s strategy to connect production directly from wellhead to market, targeting increased gas processing in the Permian and expanded natural gas liquids (NGLs) fractionation on the Gulf Coast.
The Zeus facility is planned as a 300 million cubic feet per day (mcf/d) gas processing plant.
The project will include the Midland Express (MEX) Pipeline, a new 45-mile, 20in pipeline intended to connect Phillips 66’s gathering systems in the basin. Both assets will come online simultaneously.
Once the Zeus processing plant comes online, MEX will be capable of transporting up to 230mcf/d of gas from the wellhead. The pipeline is expected to enable future bi-directional transfer between several processing locations.
The third Coastal Bend Fractionator, formerly referred to as the Corpus Christi Fractionator, will handle up to 100,000 barrels per day of NGLs.
The plant will also require the expansion of NGL purity pipeline infrastructure and new water treatment facilities.
Phillips 66 midstream executive vice-president Don Baldridge said: “Zeus Gas Plant and a third Coastal Bend Fractionator will strengthen our ability to move growing Permian volumes across an integrated value chain, from the wellhead to key market centres.
“These projects will enhance system connectivity, increase processing and fractionation capacity, and position us to serve customers while capturing additional value across our Midstream network.”
According to Phillips 66, both Zeus and the additional fractionator are included in a capital spending plan ranging from $2bn to $2.5bn.
This aligns with Phillips 66’s stated goal of lowering debt to $17bn by the end of 2027 and distributing more than 50% of net operating cash flow, excluding working-capital impacts, to shareholders.
These initiatives are designed to accommodate rising output from customers’ acreage in the Permian Basin by expanding the processing and fractionation capacity required to handle larger volumes and move them efficiently across Phillips 66’s integrated network.
With Permian production projected to increase over the next five years, the Zeus plant and the third Coastal Bend Fractionator are expected to link competitively sourced supply with downstream operations and higher-value markets.
