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Released August 03, 2020 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Like other oil and gas companies, midstream company Phillips 66 (NYSE:PSX) (Houston, Texas) suffered in second-quarter 2020 as demand for its products and transmission services declined drastically. However, while the company slashed its planned 2020 capital expenditures and deferred some projects, Phillips 66 is still underway with several growth projects. The company's capital expenditures in the second quarter were $901 million, of which $684 million was allocated to growth projects. Phillips 66 achieved major milestones on certain projects during the quarter, which Chief Executive Officer Greg Garland discussed in the company's recent earnings conference call.
Among Phillips 66's achievements in the quarter was that the Gray Oak crude oil pipeline commenced full operations from the Eagle Ford Shale to the Texas Gulf Coast, marking the completion of the project. The 850-mile pipeline will be able to transport up to 900,000 barrels per day (BBL/d) and connects to multiple refineries and facilities in the Corpus Christi area. Construction began in late 2018. For more information, see Industrial Info's project report.
Among the facilities to which the Gray Oak connects is the South Texas Gateway Terminal, a joint venture between Phillips 66, Buckeye Partners (NYSE:BPL) (Houston) and Marathon Petroleum Corporation (NYSE:MPC) (Findlay, Ohio). Garland said the first dock and eight storage tanks at the terminal, totaling 3.4 million barrels of crude oil storage capacity, have been commissioned, and earlier this month, the first crude oil tanker was loaded for export. The overall project, including a second dock, total storage capacity of 8.6 million barrels and up to 800,000 BBL/d of export capacity, is expected to be completed in the first quarter of 2021. For more information, see Industrial Info's project report.
At the Sweeny Hub in Old Ocean, Texas, Phillips 66 completed the tie-in work to integrate a second and third fractionator with its liquefied petroleum gas export facility in Freeport, Texas. Garland said the units would begin commissioning in the third quarter and start operations in fourth-quarter 2020. The fractionators will each add 150,000 BBL/d of capacity and are backed by long-term customer commitments. When the units are complete, Sweeny Hub will have 400,000 BBL/d of fractionation capacity. S&B Engineers and Constructors Limited (Houston) is providing engineering, procurement and construction services. For more information, see Industrial Info's project reports on Frac 2 and Frac 3.
Garland said the pandemic "has presented challenges unlike any we have seen before," and this can be seen in the company's Refining segment, which had a pre-tax loss of $878 million in the just-passed quarter. In a press release, the company said the decreased results were largely driven by lower margins and reduced volumes as demand for refined products cratered. Second-quarter realized margins were $2.60 per barrel, down 63% from the first quarter. Phillips 66's worldwide crude utilization rate was 75% in the second quarter, down from 83% in the first quarter.
Phillips 66 reported a net loss of $141 million in second-quarter 2020, compared with net earnings of $1.4 billion in the prior-year quarter.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Among Phillips 66's achievements in the quarter was that the Gray Oak crude oil pipeline commenced full operations from the Eagle Ford Shale to the Texas Gulf Coast, marking the completion of the project. The 850-mile pipeline will be able to transport up to 900,000 barrels per day (BBL/d) and connects to multiple refineries and facilities in the Corpus Christi area. Construction began in late 2018. For more information, see Industrial Info's project report.
Among the facilities to which the Gray Oak connects is the South Texas Gateway Terminal, a joint venture between Phillips 66, Buckeye Partners (NYSE:BPL) (Houston) and Marathon Petroleum Corporation (NYSE:MPC) (Findlay, Ohio). Garland said the first dock and eight storage tanks at the terminal, totaling 3.4 million barrels of crude oil storage capacity, have been commissioned, and earlier this month, the first crude oil tanker was loaded for export. The overall project, including a second dock, total storage capacity of 8.6 million barrels and up to 800,000 BBL/d of export capacity, is expected to be completed in the first quarter of 2021. For more information, see Industrial Info's project report.
At the Sweeny Hub in Old Ocean, Texas, Phillips 66 completed the tie-in work to integrate a second and third fractionator with its liquefied petroleum gas export facility in Freeport, Texas. Garland said the units would begin commissioning in the third quarter and start operations in fourth-quarter 2020. The fractionators will each add 150,000 BBL/d of capacity and are backed by long-term customer commitments. When the units are complete, Sweeny Hub will have 400,000 BBL/d of fractionation capacity. S&B Engineers and Constructors Limited (Houston) is providing engineering, procurement and construction services. For more information, see Industrial Info's project reports on Frac 2 and Frac 3.
Garland said the pandemic "has presented challenges unlike any we have seen before," and this can be seen in the company's Refining segment, which had a pre-tax loss of $878 million in the just-passed quarter. In a press release, the company said the decreased results were largely driven by lower margins and reduced volumes as demand for refined products cratered. Second-quarter realized margins were $2.60 per barrel, down 63% from the first quarter. Phillips 66's worldwide crude utilization rate was 75% in the second quarter, down from 83% in the first quarter.
Phillips 66 reported a net loss of $141 million in second-quarter 2020, compared with net earnings of $1.4 billion in the prior-year quarter.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
