Wedoany.com Report-Dec.16, Phillips 66 has approved a 2026 capital budget totaling 2.4 billion U.S. dollars, divided into 1.1 billion dollars for sustaining projects and 1.3 billion dollars for growth initiatives.

"The 2026 capital budget reflects our ongoing commitment to capital discipline and maximizing shareholder returns. We are investing growth capital in our NGL value chain and high-return Refining projects, while also investing sustaining capital to support safe and reliable operations," said Mark Lashier, chairman and CEO of Phillips 66.

Lashier noted that the budget incorporates approximately 200 million dollars in sustaining capital and 100 million dollars in growth capital related to the consolidation of WRB Refining.

In the Midstream segment, the allocation reaches 1.1 billion dollars, with 400 million dollars directed toward sustaining activities and 700 million dollars supporting growth. These investments advance the company's integrated natural gas liquids (NGL) strategy from wellhead to market, expanding processing, pipeline, and fractionation capabilities in major production areas.

Key growth projects include the Iron Mesa gas processing plant in the Permian Basin, a 300 million cubic feet per day facility scheduled for startup in the first quarter of 2027. Another initiative is the Coastal Bend NGL pipeline expansion, increasing capacity from 225,000 to 350,000 barrels per day and improving connectivity between Permian and Eagle Ford production to fractionators in Corpus Christi and Sweeny, with completion anticipated in the fourth quarter of 2026.

A proposed 100,000 barrels per day fractionator in Corpus Christi is also planned, enhancing bidirectional flow of Y-grade and purity products among Corpus Christi, Sweeny, and Mont Belvieu. A final investment decision is expected early in 2026, targeting operations in 2028.

For the Refining segment, Phillips 66 has budgeted approximately 1.1 billion dollars, comprising 590 million dollars for sustaining capital and 520 million dollars for growth. This supports operational excellence alongside high-return opportunities.

Growth expenditures feature the Humber gasoline quality improvement project, a multi-year effort to produce higher-specification gasoline for expanded access to premium global markets, with startup planned for the second quarter of 2027. Additional funding covers more than 100 smaller, high-return initiatives focused on enhancing crude flexibility, feedstock optimization, and clean product yields.

The company's proportionate share of capital spending in its joint venture, Chevron Phillips Chemical Company LLC (CPChem), is projected at 680 million dollars, fully self-funded. This includes 200 million dollars for sustaining purposes and 480 million dollars for growth, primarily advancing construction of large-scale petrochemical facilities on the U.S. Gulf Coast and in Ras Laffan, Qatar, with respective startups in 2026 and early 2027.

The overall budget demonstrates a balanced approach to maintaining asset integrity, pursuing strategic expansions, and delivering value through disciplined investments across diversified operations.