Phillips 66 (NYSE:PSX) shares are up during Monday's premarket session. The company advanced its integrated wellhead-to-market strategy with the announcement of the Zeus Gas Plant and a third Coastal Bend Fractionator.

These projects are expected to enhance gas processing capacity in the Permian and NGL fractionation capabilities on the Gulf Coast. The company is moving forward with these initiatives as part of its capital spending program.

Phillips 66 is set to develop a 300 MMcf/d gas processing facility, the Zeus Gas Plant, along with a 100 MBD natural gas liquids fractionator in Robstown, Texas.

The Zeus gas processing facility will be supported by the new Midland Express (MEX) Pipeline. It is a ~45-mile, 20-inch line that integrates Phillips 66's Permian gathering systems.

The MEX pipeline is expected to start up alongside the Zeus plant. The pipeline will transport up to 230 MMcf/d of wellhead gas and provide future bi-directional flow flexibility between multiple processing sites.

Projects Significance

These projects are designed to support rising Permian output by expanding processing and fractionation capacity. Improving flow efficiency across the integrated system, and linking growing supply to downstream assets and ...