Phillips 66 has announced a consolidated capital investment budget of $2.4bn for 2026, split between $1.3bn for growth projects and $1.1bn dedicated to sustaining capital. The company stated that this allocation reflects its commitment to financial discipline while ensuring safe and reliable operations across its core segments.
Focus on midstream assets
In the midstream segment, the budget totals $1.1bn, including $400mn for sustaining projects and $700mn for growth initiatives. These investments align with Phillips 66’s integrated strategy to strengthen the natural gas liquids (NGL) value chain from wellhead to market. Funded projects include the construction of the Iron Mesa unit in the Permian Basin — a gas processing facility with a capacity of 300 million cubic feet per day, expected to begin operations in the first quarter of 2027.
The Coastal Bend NGL pipeline expansion, which will connect production from the Permian and Eagle Ford basins to fractionation facilities in Corpus Christi and Sweeny, is set to increase capacity from 225,000 to 350,000 barrels per day. The project is expected to come online in the fourth quarter of 2026. A new fractionator in Corpus Christi, with a capacity of 100,000 barrels per day, is also planned. A final investment decision is expected in early 2026, with commissioning scheduled for 2028.
Refining: targeted projects and upgrades
The refining segment will receive approximately $1.1bn, including $590mn for maintenance and $520mn for growth projects. The group plans a gasoline quality improvement project at its Humber site in the United Kingdom, aimed at producing higher-value fuel for global markets. Start-up is targeted for the second quarter of 2027.
Additionally, more than 100 low-capital, high-return projects are scheduled, focused on improving crude flexibility, optimising feedstocks, and increasing clean product yields.
Spending across other segments and joint ventures
Marketing and Specialties will receive $80mn, divided between $30mn for maintenance and $50mn for growth. Renewable fuels will receive $40mn, with limited but targeted investments. The “Corporate and Other” line item is allocated $40mn, fully dedicated to maintenance.
Phillips 66’s share of capital expenditures for its joint venture, Chevron Phillips Chemical Company LLC (CPChem), amounts to $680mn, fully self-funded. This includes $200mn for sustaining capital and $480mn for growth projects. CPChem is continuing construction of world-scale petrochemical units on the US Gulf Coast and in Ras Laffan, Qatar, with start-up expected in 2026 and early 2027 respectively.
