Phillips 66 reached a key milestone in its midstream expansion strategy with the successful startup of the Dos Picos II gas processing plant in the Permian Basin. The new facility strengthens the company’s integrated value chain by increasing its ability to capture and move natural gas liquids (NGLs) from wellhead to market.
Boosting Processing Capacity and Integration
The Dos Picos II plant adds 220 million standard cubic feet per day (MMscfd) of natural gas processing capacity, effectively doubling the throughput from Phillips 66’s Pinnacle acquisition assets to a total of 440 MMscfd. Phillips 66 strategically located the cryogenic facility in the Midland Basin and equipped it with advanced ethane extraction technology, enhancing the efficiency and scale of its NGL operations. This is the first gas plant the company has built since 2019, when it developed the last one under DCP Midstream.
Enabling Growth Across the Value Chain
With this project, Phillips 66 advances its goal of building a robust, integrated NGL infrastructure. The plant enables smoother flow from upstream production through midstream systems. It also connects seamlessly to the company’s fractionation and export assets, aligning with its broader growth and export strategy.
Don Baldridge, Executive Vice President, Midstream and Chemicals, stated, “The momentum we’re building is impressive. This project reflects what our Midstream team can accomplish together. It positions us to serve our customers more efficiently and supports long-term growth.”
Teamwork and Safety Drive Project Success
The Dos Picos II project was completed on schedule and with a strong safety record. This success resulted from cross-functional teamwork and disciplined execution across the organization. Bill Johnson, Vice President, Midstream Operations, commented, “Bringing this facility online safely and on schedule is a direct result of our operational discipline. It also reflects the strong teamwork across our organization.” Thank you to the teams in Commercial, Business Development, and Operations for making this successful delivery possible.”
Building Long-Term Value
The successful launch of Dos Picos II highlights Phillips 66’s integrated strategy and continued investment in high-value infrastructure. According to the company press release, Phillips 66 is expanding its Midstream capabilities. This positions the company for long-term value creation across both its midstream and downstream businesses.
