Phillips 66 has announced plans to proceed with the development of the Zeus Gas Plant and a third Coastal Bend Fractionator, two projects aimed at strengthening the company’s integrated wellhead-to-market strategy by expanding gas processing capacity in the Permian Basin and natural gas liquids (NGL) fractionation capabilities along the Gulf Coast.
The Zeus Gas Plant will be a 300 MMcf/d gas processing facility located in the Permian Basin. The project will also include the new Midland Express (MEX) Pipeline, an approximately 45-mile, 20-inch pipeline designed to integrate Phillips 66’s Permian Basin gathering systems. Expected to begin operations alongside the Zeus plant, the MEX Pipeline will have the capacity to transport up to 230 MMcf/d of wellhead gas while providing future bi-directional flexibility between multiple processing facilities.
The third Coastal Bend Fractionator, previously referred to as the Corpus Christi Fractionator or BTT2, will be a 100 MBD NGL fractionation facility located in Robstown, Texas. The development will also include NGL purity pipeline expansions and additional water treatment infrastructure.
Both projects are scheduled to come online in 2028.
According to Phillips 66, the projects are intended to improve system connectivity, increase processing and fractionation capacity, and support rising production volumes from the Permian Basin. The company said the investments will enhance its ability to transport growing Permian output through an integrated midstream network to downstream assets and key market hubs.
The Zeus Gas Plant and third Coastal Bend Fractionator are included within Phillips 66’s existing capital spending program and remain within the company’s stated capital expenditure range of $2.0 billion to $2.5 billion. The company also reaffirmed its commitment to reducing debt to $17 billion by the end of 2027 while returning more than 50% of net operating cash flow, excluding working capital, to shareholders.
Phillips 66 noted that the projects are expected to support increasing production from customer-dedicated acreage in the Permian Basin by providing the additional processing and fractionation capacity needed to efficiently move higher volumes through its integrated system over the coming years.
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