LyondellBasell, Phillips 66 plan new NGL fractionation capacity in Texas

23:30 PM | April 15, 2013 | —Clay Boswell

LyondellBasell Industries and Phillips 66 have separately announced plans to add natural gas liquid (NGL) fractionation capacity at sites in Texas.

LyondellBasell says TexStar MidStream Services (San Antonio) will install two NGL fractionation units adjacent to the Corpus Christi, TX, plant of LyondellBasell affiliate Equistar Chemicals. Construction is scheduled to begin in April, with start-up planned for late 2013.

The units will be capable of processing a combined 63,000 bbl/day of NGLs produced from the Eagle Ford shale into ethane, propane, butanes, and natural gasoline. Equistar will operate the fractionators for TexStar and provide utilities from its adjacent Corpus Christi olefins facility. The company will also purchase ethane and propane produced by the units under a long-term agreement to provide feedstock for the olefins facility.

LyondellBasell recently announced plans to expand ethylene capacity at Corpus Christi by 800 million lbs/year.

Phillips 66 is developing a 100,000-bbl/day NGL) fractionator at Old Ocean, TX, close to its Sweeny Refinery. The project is currently in the engineering design phase. If it is approved, construction will begin in the first half of 2014, with start-up by the second half of 2015, the company says.

NGL feedstock would be supplied by several nearby pipelines, thus avoiding congestion at Mont Belvieu, TX, and products would be marketed primarily to customers in the region with access to Mont Belvieu.

Phillips 66 also owns a 50% interest in Chevron Phillips Chemical, which has announced plans to expand an existing NGL fractionation unit at its Sweeny operations by approximately 22,000 bbl/day, a 19% increase, to increase petrochemical feedstock flexibility.