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(hydrocarbonprocessing) --
Phillips 66 will focus on growing its chemical and midstream segments at the
expense of its fuel production business because of the weak outlook for fuel
demand, the company's incoming CEO said. The comapny will split 50% of its
capital expenditure budget evenly on the two segments.
Phillips 66 will focus on growing its chemical and midstream segments at the
expense of its fuel production business because of the weak outlook for fuel
demand, the company's incoming CEO said Monday.
Phillips 66, the refining arm of oil major ConocoPhillips that will become a
stand-alone company after April 30, will shift its long-term capital spending to
its Chevron Phillips Chemical production and DCP Midstream segments.
Chevron Phillips is a 50-50 joint venture with Chevron. DCP is a partnership
with ConocoPhillips and Spectra Energy.
Phillips 66 will roughly double its 2012 capital expenditure budget for its
chemical business to USD500 million, while its spending on its refining business
will grow from just under USD1 billion, Greg Garland, a ConocoPhillips executive
vice president who will head Phillips 66, said. |
