08-12-2023
Phillips 66 announces 2024 capital program
Phillips 66 today announced a 2024 capital budget of $2.2 billion, including $923 million for sustaining capital and $1.3 billion for growth capital. Excluding joint venture debt repayments due in 2024, the company’s 2024 capital budget is $2 billion.
“We continue to demonstrate capital discipline in support of our strategic priorities,” said Mark Lashier, president and CEO of Phillips 66. “The 2024 capital budget includes investing in our NGL wellhead-to-market value chain, completing the Rodeo renewable fuels facility and enhancing Refining performance. In addition, the capital budget is consistent with our plan to return $13 billion to $15 billion to shareholders by year-end 2024.”
Lashier added that the sustaining capital budget reflects $300 million of efficiencies as a result of the company’s business transformation efforts. Phillips 66’s historical average sustaining capital spend was approximately $1 billion per year prior to business transformation, and the consolidation of DCP Midstream adds approximately $200 million in sustaining capital.
In Midstream, the capital budget of $985 million comprises $392 million for sustaining projects and $593 million for growth projects focused on enhancing the company’s integrated NGL wellhead-to-market value chain. In addition, growth capital includes $250 million related to the repayment of the company’s 25% share of the Bakken Pipeline joint venture’s debt due in 2024.
Phillips 66 plans to invest $1.1 billion in Refining, including $412 million for sustaining capital. Refining growth capital of $654 million includes completing the conversion of the San Francisco Refinery in Rodeo, California, into one of the world’s largest renewable fuels facilities. Startup of the converted facility is expected in the first quarter of 2024. The conversion will reduce emissions from the facility and allow for the production of lower carbon-intensity transportation fuels. Refining growth capital will also support high-return, low-capital projects to enhance market capture.
The Marketing and Specialties capital budget reflects continued enhancement of the company’s retail network, including energy transition opportunities.
Corporate and Other capital will primarily fund information technology projects.
Phillips 66’s proportionate share of capital spending by joint ventures Chevron Phillips Chemical Company LLC and WRB Refining LP is expected to total $1 billion and be self-funded.
CPChem’s growth capital will fund the construction of world-scale petrochemical facilities on the U.S. Gulf Coast and in Ras Laffan, Qatar, through joint ventures. The facilities have project financing in place and are expected to start up in 2026.
WRB’s capital spending will be directed to sustaining projects and enhancing market capture.
Including Phillips 66’s proportionate share of capital spending associated with joint ventures CPChem and WRB, the company’s total 2024 capital program is projected to be $3.2 billion.
News Category:
-
Beyond processbook & PI vision: Exploring today’s industrial analytics tools
(Webinar) - In the Manufacturing 4.0 era, industrial organizations have more data at their fingertips than ever, offering the promise of higher production rates, more ...
04-06-2024
-
Sasol provides state of the art catalysts to INERATEC for the production of sustainable e-fuels
The catalysts will be used, among others, in the first large-scale industrial Power-to-Liquid (PtL) plant that INERATEC is currently building in Frankfurt, Germany, which ...
24-04-2024
-
Baker Hughes to supply 17 centrifugal compressors to Saudi Master Gas System project
Baker Hughes, an energy technology company, announced Tuesday that it has received an order by Worley, for and on behalf of Aramco, to supply gas technology equipment ...
23-04-2024
-
SABIC Fujian Petrochemicals select Phenol yechnology from KBR
KBR announced today it has been awarded a contract by SABIC Fujian Petrochemicals to license KBR's market-leading phenol technology in China. Under the terms of the ...
22-04-2024
-
Lummus Expands R&D capabilities to enhance innovation and water and wastewater technologies
Lummus Technology, a global provider of process technologies and value-driven energy solutions, announced the opening of its cutting-edge research and development (R&D) ...
17-04-2024
-
Clariant launches new CATOFIN® 312 propane dehydrogenation catalyst
Clariant, a sustainability-focused specialty chemical company, today announced the launch of CATOFIN 312, its latest propane dehydrogenation catalyst. The new catalyst ...
16-04-2024
-
Yokogawa and GridBeyond conclude investment and strategic partnership agreements
Yokogawa Electric Corporation and energy IT solutions provider GridBeyond of Ireland announce that they have concluded a strategic partnership agreement. Furthermore, ...
16-04-2024
-
Heraeus Precious Metals launches Circlear
Heraeus Precious Metals, a globally leading company in the precious metals industry and one of the largest recyclers of precious metals, has introduced its new offering ...
16-04-2024
-
EMA and JERA to cooperate on LNG procurement and supply chains
The Energy Market Authority and JERA Co Inc, have signed a Memorandum of Understanding to cooperate on mutually beneficial areas in liquefied natural gas procurement ...
16-04-2024
-
Hexagon and Dragos unveil technical partnership to strengthen industrial cybersecurity
Hexagon’s Asset Lifecycle Intelligence division today announced a strategic partnership with Dragos, a global leader in cybersecurity for operational technology (OT). ...
16-04-2024