Phillips 66 kicks off major US gas midstream projects

HOUSTON, May 19, 2026 – Phillips 66 will advance two new projects for gas processing and fractionation to expand its midstream infrastructure connecting Permian Basin production with US Gulf markets, the company announced on Monday.

Under the Zeus Gas Plant project, Phillips 66 will add processing capacity of 8.5 mcm (300 mcf) per day and construct the new Midland Express (MEX) Pipeline, a 72-kilometre, 20-inch connector for the company’s gathering systems in the Permian Basin. The bi-directional pipeline will be able to move up to 6.5 mcm (230 mcf) per day of wellhead gas and increase distributional flexibility among processing facilities.

The company will also proceed with the third Coastal Bend Fractionator, previously known as the Corpus Christi Fractionator, or BTT2, a 100,000-bpd NGL fractionator in Robstown, Texas.

“Zeus Gas Plant and a third Coastal Bend Fractionator will strengthen our ability to move growing Permian volumes across an integrated value chain, from the wellhead to key market centres. They will enhance system connectivity, increase processing and fractionation capacity and position us to serve customers while capturing additional value across our Midstream network,” said Don Baldridge, executive vice-president of midstream at Phillips 66.

Both projects are scheduled to come on stream in 2028 and aim to support production growth among Phillips 66’s Permian Basin customers over the next five years. The company said the projects are included in its USD 2.0 billion-2.5 billion capital spending programme and consistent with plans to cut debt to USD 17 billion by year-end 2027.

Based in Houston, Phillips 66 is an integrated downstream energy company with businesses in refining, chemicals, midstream transportation infrastructure and marketing.

Photo courtesy of Phillips 66

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