Phillips 66 plans to develop an LPG export terminal in Freeport, TX. The new terminal is intended to help meet growing global market demand for U.S.-supplied products.
“We are looking at a rapidly changing energy landscape that presents excellent opportunities in the natural gas liquids piece of our Midstream business,” said Tim Taylor, executive vice president, Phillips 66 Commercial, Marketing, Transportation and Business Development. “A liquefied petroleum gas terminal downstream of our Sweeny complex supports our growth strategy in Midstream and builds on our strong record of operating excellence, and there are attractive markets outside of the United States for products like butane and propane.”
The proposed LPG export terminal would provide 4.4 MMbbl of LPG export capacity, the equivalent of eight very large gas carriers (VLGC). It would be located at the site of the company’s existing marine terminal in Freeport and use existing Phillips 66 midstream, transportation and storage infrastructure to supply petrochemical, heating and transportation markets globally.
The Freeport LPG export terminal would be supplied with LPG from the Mont Belvieu area and from Phillips 66’s Sweeny complex at Old Ocean, TX, including its recently announced Sweeny Fractionator One, which is expected to start up by the second half of 2015.
The export terminal project is currently in the engineering design phase, which includes the process of filing for all applicable permits. Final project approval is anticipated during the first half of 2014 with start up planned for the middle of 2016.