Phillips 66 will expand its gas processing capabilities in the Permian basin and Gulf Coast

Refiner 'Phillips 66' said on Monday that it will'move forward with the Zeus Gas Plant and a third Coastal Bend -?Fractionator?in?Texas to expand its network and capture the growing volumes of natural gas and liquids coming from the largest U.S. shale fields.

In premarket trading, shares of the company rose 2.3%.

The company stated that the Zeus Gas Plant would have the capacity to process 300,000,000 cubic feet of gas per day and will include the new Midland Express Pipeline.

The approximately 45-mile-long, 20-inch-wide?pipeline? will connect Phillips 66’s Permian Basin gathering system and transport up to 230,000,000 cubic feet of raw natural gas?per day from the 'field.

The third Coastal?Fractionator (previously called Corpus Christi Fractionator) will have a daily capacity of 100,000 barrels.

Both projects are scheduled to begin operations in 2028.

A fractionator is a device that separates natural gas liquids such as butane and propane into their individual components. This allows them to be sold, transported, or exported separately.

These projects will support the rising production in the Permian basin by adding gas fractionation and processing capacity. Phillips 66 stated that the projects would 'help move increasing volumes through its integrated systems and connect supply with downstream assets and premium market.

Phillips 66 is expanding its midstream footprint to meet the demand of more pipelines, gas processing and natural liquids infrastructure due to increased Permian basin production.

The company's capital expenditure plan, which ranges from $2.0 billion up to $2.5 billion, includes the Zeus -Gas Plant as well as the third Coastal Bend Fractionator. (Reporting by Dharna Bafna in Bengaluru; Editing by Leroy Leo)

(source: Reuters)