Must-know: Phillips 66’s chemicals and refining assets

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Phillips 66’s chemicals and refining assets

Phillips 66’s (PSX) Chemicals segment consists of its 50% equity investment in Chevron Phillips Chemical Company LLC (or CPChem). PSX owns interest in CPChem’s 35 manufacturing facilities across the world. Chevron Corporation (CVX) owns the other 50% in the CPChem joint venture.

CPChem has two operating segments:

  1. Olefins and Polyolefins (or O&P)
  2. Specialties, Aromatics, and Styrenics (or SA&S)

CPChem busness

The O&P segment produces and markets ethylene, propylene, and other olefin products. These are mainly used to produce various plastic-based chemical compounds—like polyethylene, normal alpha olefins, polypropylene, and polyethylene pipe.

Olefin and polyolefin are used in food and beverage packaging and containers, wire and cable compounds, and paints and coatings.

Specialty products include lubricants. Aromatics products include benzene, styrene, paraxylene, and cyclohexane. Styrenics products are used in food service containers, CD cases, appliance housings, envelope windows, and many other products.

Outside the U.S., CPChem’s manufacturing facilities are located in Belgium, China, Colombia, Qatar, Saudi Arabia, Singapore, and South Korea.

Refining segment assetsPSX Refinery Assets chart

PSX’s Refinery segment refines crude oil and other feedstocks into petroleum products like gasoline, distillates, and aviation fuels.

The segment has 15 refineries located in the U.S., Europe, and Asia.

Apart from the U.S. refineries, as described in the chart above, its international refineries include the Humber Refinery in England, Whitegate Refinery in Ireland, MiRO Refinery in Germany, and Melaka Refinery in Malaysia.

WRB refining

WRB Refinery

PSX’s WRB facilities consist of the Wood River and Borger refineries. PSX has 50% ownership in WRB. Cenovus Energy (CVE) owns the other 50% in the joint venture.

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WRB processes heavy Canadian crude oil. Its production capacity ranges between 235,000–255,000 barrels per day after the coker and refining expansion (or CORE) project at the Wood River Refinery. PSX and  CVX are components of the Energy Select Sector SPDR ETF (XLE). CVX is also a component of the SPDR Oil & Gas Exploration & Production ETF (XOP).

Visit the Market Realist Energy & Power page to learn more.

Correction notice: When Market Realist originally published this article, the first table mistakenly indicated that Belle Chasse was in Los Angeles. We have since corrected the location to Belle Chasse, Louisiana. We apologize for this error. 

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