The company’s second-quarter update announces construction of a third Coastal Bend fractionator while gas processing, NGL pipeline and world-scale polymer projects advance through 2028.
Published by Allstream Insiders.
Allstream Insiders Summary
Phillips 66 has achieved full production at the 220 MMcf/d Dos Picos II gas plant and is advancing a multiyear project program connecting Permian Basin natural gas supply with Gulf Coast fractionation and petrochemical infrastructure.
The company’s August 5, 2026 update identifies four immediate project milestones:
- Dos Picos II: Achieved full production at the 220 MMcf/d Midland Basin gas processing plant.
- Zeus Gas Plant: Phillips 66 announced construction of a 300 MMcf/d Permian Basin processing project with an associated 45-mile, 20-inch Midland Express Pipeline.
- Third Coastal Bend Fractionator: Phillips 66 announced construction of a 100,000-barrel-per-day NGL fractionator in Robstown, in the Corpus Christi area of Texas.
- CPChem polymer projects: Continued construction at the Golden Triangle Polymers Project in Orange, Texas, and the Ras Laffan Polymers Project in Qatar, with Phillips 66 now expecting full operations at both during 2027.
Phillips 66 approved a companywide $2.4 billion capital budget for 2026, including approximately $1.3 billion of growth capital and $1.1 billion of sustaining capital. The budget assigns $1.1 billion to Midstream and approximately $1.1 billion to Refining, while Phillips 66’s proportionate share of CPChem capital spending is expected to total a separately self-funded $680 million. Phillips 66 has not disclosed total project costs or individual 2026 capital allocations for Zeus, Midland Express, Iron Mesa or the third Coastal Bend Fractionator.
Phillips 66 Project and Capital Tracker
The second-quarter release provides current operating and construction milestones. Supporting Phillips 66 and Chevron Phillips Chemical disclosures provide the project capacities, locations, ownership structures and expected schedules.
| Project or program | Location | Principal scope | Latest company-reported stage or schedule |
|---|---|---|---|
| Dos Picos II | Midland Basin, Permian Basin | 220 MMcf/d cryogenic gas processing plant | Achieved full production in Q2 2026 |
| Iron Mesa Gas Plant | Permian Basin | 300 MMcf/d gas processing plant | Under construction; startup expected Q1 2027 |
| Coastal Bend NGL Pipeline Expansion | Permian and Eagle Ford connections to Corpus Christi and Sweeny | Capacity increase from 225,000 to 350,000 bpd | Completion expected Q4 2026 |
| Zeus Gas Plant | Permian Basin | 300 MMcf/d gas processing plant | Construction announced; service expected in 2028 |
| Midland Express Pipeline | Permian Basin | Approximately 45 miles, 20 inches, up to 230 MMcf/d | Planned online with Zeus in 2028 |
| Third Coastal Bend Fractionator | Robstown, in the Corpus Christi area of Texas | 100,000-bpd NGL fractionator, purity-pipeline expansion and water treatment | Construction announced; service expected in 2028 |
| Golden Triangle Polymers | Orange, Texas | 2.08 million metric tons/year ethylene cracker and 2 million metric tons/year of HDPE capacity | Construction progressing; full operations expected in 2027 |
| Ras Laffan Polymers | Ras Laffan Industrial City, Qatar | 2.08 million metric tons/year ethylene cracker and 1.68 million metric tons/year of HDPE capacity | Construction progressing; full operations expected in 2027 |
| Humber Gasoline Quality Improvement | Humber Refinery, United Kingdom | Multiyear refining project supporting higher-quality gasoline production | Startup targeted for Q2 2027 |
Dos Picos II Reaches Full Production
Phillips 66 reported full production at Dos Picos II during the second quarter of 2026. The 220 MMcf/d cryogenic gas processing plant began operations in the Midland Basin in July 2025 and includes ethane-extraction capability.
Dos Picos II doubled the designed processing capacity of the assets Phillips 66 acquired from Pinnacle Midstream to 440 MMcf/d. The plant provides additional NGL recovery at the wellhead and connects Permian production with the company’s downstream NGL pipelines, fractionators and export infrastructure.
The distinction between startup and full production is important. Dos Picos II entered service in 2025; the August 2026 update represents the plant reaching its full-production milestone rather than the initial commissioning event.
Zeus and Midland Express Enter the Permian Project Queue
Phillips 66 is moving forward with the 300 MMcf/d Zeus Gas Plant and the associated Midland Express Pipeline, with both expected online in 2028.
The Midland Express Pipeline, also identified as MEX, is planned as an approximately 45-mile, 20-inch pipeline capable of moving up to 230 MMcf/d of wellhead gas. Phillips 66 said the line will connect portions of its Permian gathering system and provide future bidirectional flexibility between processing facilities.
Zeus follows the company’s current Iron Mesa construction program. Iron Mesa is another 300 MMcf/d Permian gas processing plant, with startup expected during the first quarter of 2027.
The two plants are separate projects with different schedules. Iron Mesa is the nearer-term facility already progressing through structural construction, while Zeus and the Midland Express Pipeline extend the gas-processing and gathering buildout into 2028.
Third Coastal Bend Fractionator Moves Into Construction
The third Coastal Bend Fractionator has advanced from a proposed project in Phillips 66’s 2026 capital budget to an announced construction project.
The facility is planned as a 100,000-barrel-per-day NGL fractionator in Robstown, Texas. It was previously described as the Corpus Christi Fractionator or BTT2. The scope also includes an NGL purity-pipeline expansion and water-treatment facilities.
Phillips 66 expects the project online in 2028. In announcing the projects, Midstream Executive Vice President Don Baldridge said they would “strengthen our ability to move growing Permian volumes across an integrated value chain, from the wellhead to key market centers.”
The project follows the ongoing Coastal Bend NGL pipeline expansion. That program is designed to increase capacity from 225,000 to 350,000 barrels per day and improve connections between Permian and Eagle Ford production and fractionation capacity in Corpus Christi and Sweeny. Completion is expected during the fourth quarter of 2026.
Together, the projects establish a physical sequence from Permian gas processing through NGL transportation and Gulf Coast fractionation:
- Dos Picos II, Iron Mesa and Zeus provide gas processing and NGL recovery.
- Midland Express adds wellhead-gas movement and processing-system flexibility.
- The Coastal Bend pipeline expansion moves additional NGL volumes toward Gulf Coast hubs.
- The third Coastal Bend Fractionator separates mixed NGLs into purity products at Robstown.
- Purity pipelines provide connections with the wider Phillips 66 NGL system and downstream markets.
Golden Triangle Polymers Progresses Toward Full Operations in 2027
Chevron Phillips Chemical Company is advancing the $8.5 billion Golden Triangle Polymers Project in Orange, Texas, with Phillips 66 reporting full operations expected in 2027.
The integrated complex includes an ethane cracker designed for approximately 2.08 million metric tons per year of ethylene and two high-density polyethylene units designed for a combined 2 million metric tons per year.
Golden Triangle Polymers is a joint venture between CPChem and QatarEnergy. CPChem holds 51% and QatarEnergy holds 49%. Chevron Phillips Chemical is managing engineering, procurement and construction and is expected to operate the facility following startup.
Phillips 66 owns 50% of CPChem, with Chevron holding the other 50%. The $8.5 billion value is the total Golden Triangle joint-venture project cost and should not be presented as Phillips 66’s direct project expenditure.
As construction progresses toward operations, the project could continue to require mechanical completion, systems turnover, electrical and instrumentation closeout, testing, commissioning, operator training and startup support. These are Allstream observations based on the project stage and do not represent announced contract packages.
Ras Laffan Polymers Also Targets Full Operations in 2027
CPChem and QatarEnergy are also advancing the $6 billion Ras Laffan Polymers Project in Qatar, with full operations expected in 2027.
The 435-acre complex includes an ethane cracker designed for approximately 2.08 million metric tons per year of ethylene and two high-density polyethylene units with combined capacity of approximately 1.68 million metric tons per year.
QatarEnergy owns 70% of the Ras Laffan project company, while CPChem owns 30%. CPChem provides project-management services overseeing engineering, procurement and construction.
The $6 billion figure represents the complete joint-venture project rather than Phillips 66’s individual capital commitment. Phillips 66’s indirect economic exposure is through its 50% ownership of CPChem.
Wood River and Humber Complete Refinery Turnarounds
Phillips 66 completed planned turnarounds at the Wood River Refinery in Illinois and the Humber Refinery in the United Kingdom during the second quarter. The release identifies both maintenance programs as completed operating milestones but does not provide project-level spending or detailed work packages.
The Humber turnaround is separate from the refinery’s multiyear gasoline quality improvement project. Phillips 66’s 2026 capital plan targets startup of that project during the second quarter of 2027, with the improvements intended to enable production of higher-quality gasoline for additional global markets.
Phillips 66 Directs $2.4 Billion Across Its 2026 Capital Program
Phillips 66’s approved 2026 capital budget totals approximately $2.4 billion, divided between sustaining investment and organic growth projects.
| Phillips 66 business area | Sustaining capital | Growth capital | Total 2026 budget |
|---|---|---|---|
| Midstream | $400 million | $700 million | $1.10 billion |
| Refining | $590 million | $520 million | $1.11 billion |
| Marketing and Specialties | $30 million | $50 million | $80 million |
| Renewable Fuels | $10 million | $30 million | $40 million |
| Corporate and Other | $40 million | — | $40 million |
| Consolidated Phillips 66 | $1.07 billion | $1.30 billion | $2.37 billion |
Phillips 66 describes the rounded program as a $2.4 billion capital budget. These business-level amounts should not be assigned to an individual plant, pipeline, fractionator or refinery project without a project-specific disclosure.
The company’s published capital-budget table excludes $50 million of noncash finance leases, consisting of $40 million in Midstream and $10 million in Refining.
Separately, Phillips 66 expects its proportionate share of CPChem’s 2026 capital spending to total $680 million, including $480 million for growth and $200 million for sustaining investment. CPChem is expected to fund that spending independently.
Allstream Perspective
Phillips 66’s second-quarter update connects several previously announced investments into a defined execution sequence. Dos Picos II has reached full production, Iron Mesa is under construction for 2027 startup, and Zeus and Midland Express add another processing-and-gathering increment for 2028.
On the Gulf Coast, the Coastal Bend pipeline expansion is targeted for completion in late 2026, while the third fractionator has progressed from proposal to construction for 2028 service. The combined program increases infrastructure at multiple steps of the NGL value chain rather than relying on a single isolated asset.
For contractors, equipment manufacturers and industrial service providers, the active scopes could involve cryogenic processing, compression, line pipe, large-diameter pipeline work, process modules for fractionation, water treatment, valves, pumps, metering, automation, electrical systems, inspection and commissioning. Golden Triangle and Ras Laffan add world-scale ethylene and polyethylene work moving toward completion and startup.
These work categories are Allstream analysis of company-announced projects. Phillips 66 and CPChem have not identified corresponding new contractor awards, bid packages or procurement dates in the second-quarter release.
