US-based energy manufacturer Phillips 66 has announced its plan to develop a 100,000 barrel-per-day natural gas liquids (NGL) fractionator in Old Ocean, Texas.
The fractionators will be located near the company’s Sweeny Refinery.
Phillips 66 chairman and CEO Greg Garland said the project will help the company benefit from the existing midstream transportation and storage infrastructure.
"We see excellent market-facing opportunities to grow the natural gas liquids business, and the chance to supply purity NGLs and liquefied petroleum gas to the petrochemical industry and heating markets," Garland added.
Feedstock for the fractionators will be transported through nearby pipelines and the products produced at the facility will be sold to the petrochemical customers in the region.
Phillips 66 recently sent notices seeking expression of interest from potential Y-grade suppliers of NGL.
The project is currently in the engineering design phase, and the company is in the process of filing for all applicable permits.
Upon receiving approval, construction of the facility is expected to begin in the first half of 2014, while operations is expected to begin in the second half of 2015.