Phillips 66 has successfully launched its new Dos Picos II gas plant in the Permian Basin, significantly boosting its natural gas liquids (NGL) processing capacity and strengthening its integrated value chain.
Phillips 66 announced a significant expansion of its Midstream operations with the successful startup of the Dos Picos II gas plant in the Permian Basin. This state-of-the-art facility is set to play a pivotal role in enhancing the company's integrated value chain, optimizing the capture and flow of natural gas liquids (NGL) from the wellhead.
The new cryogenic gas processing plant, equipped with advanced ethane extraction capabilities, adds an impressive 220 million standard cubic feet per day (MMscfd) of processing capacity. This addition effectively doubles the total throughput from the company’s Pinnacle acquisition assets to a robust 440 MMscfd, underscoring Phillips 66's commitment to expanding its NGL infrastructure in one of the most prolific energy basins globally.
Located strategically in the heart of the Midland Basin, Dos Picos II represents a major milestone as the first gas plant constructed by Phillips 66 since 2019, when the last facility was built under DCP Midstream. This latest development highlights a renewed focus on organic growth within the company's Midstream segment and its dedication to meeting the growing demand for NGLs.
Don Baldridge, Executive Vice President, Midstream and Chemicals, expressed his enthusiasm for the project's completion. "The momentum we’re building is impressive," Baldridge stated. "This project reflects what our Midstream team can accomplish together. It positions us to serve our customers more efficiently and supports long-term growth." His comments emphasize the strategic importance of Dos Picos II in Phillips 66's broader energy landscape, aiming to create sustained value for its stakeholders.
The success of the Dos Picos II project is attributed to strong collaboration across various departments and a disciplined focus on safety, according to company officials. Bill Johnson, Vice President, Midstream Operations, commended the collective effort. "Bringing this facility online safely, on schedule, and ready for performance is a direct result of the operational discipline and teamwork across our organization," Johnson remarked. He extended his gratitude to the Commercial, Business Development, and Operations teams, whose combined efforts were instrumental in the successful delivery of the plant.
The Dos Picos II plant stands as a tangible example of Phillips 66's integrated strategy in action. By seamlessly connecting upstream production with midstream processing and downstream export capabilities, the company is not only enhancing its operational efficiency but also reinforcing its position as a key player in the NGL market. This disciplined execution and cross-functional collaboration are expected to deliver significant long-term value creation across Phillips 66’s midstream and downstream businesses, solidifying its future growth trajectory.
