What new midstream facilities is Phillips 66 planning to build, and when are they expected to begin operations?

Phillips 66 plans to build the Zeus natural gas processing plant in the Permian with a capacity of 300 million cubic feet/day, and its third Coastal Bend fractionator near Corpus Christi, Texas, with a capacity of 100,000 barrels/day; both facilities are scheduled to start operations in 2028.

Why are US midstream companies like Phillips 66 expanding infrastructure for ethane and propane, according to the article?

Midstream companies are expanding infrastructure because forecasts for US ethane and propane production — key chemical feedstocks — continue to rise, driven by increasing associated gas from crude oil wells and rising natural gas production from gas wells; the US Energy Information Administration (EIA) has raised its 2026 and 2027 ethane and propane production forecasts nearly every month, and with limited domestic demand growth (only two new crackers coming online), much of the additional NGL output is expected to be exported via newly expanded or upcoming terminals.

Phillips 66 to Build Midstream Plants Amid Growth in US Chemical Feedstock

May 18, 2026

Phillips 66 plans new midstream plants to process rising US ethane and propane production, joining other firms expanding export terminals amid limited domestic cracking capacity. ICIS and EIA forecasts continue to rise for NGLs through 2027.

icis

2026-05-18

Phillips 66 to Build Midstream Plants Amid Growth in US Chemical Feedstock

2026-05-18

Phillips 66 to expand gas processing in Permian Basin and Gulf Coast

Phillips 66 to Build Midstream Plants Amid Growth in US Chemical Feedstock

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