Executive Summary:
Infrastructure: Phillips 66 has quietly expanded the fractionators at its Sweeny complex on the Texas Gulf Coast, contributing much-needed capacity to handle growth in Permian NGL supply.
Exports: NGL exports declined 7.7% W-o-W for the week ending June 19, driven by a modest decrease in LPG exports and a larger decline in ethane exports.
Rigs: The total US rig count decreased by 2 rigs to 571 for the week of June 13. Liquids-driven basins declined from 440 to 438 rigs.
Infrastructure:
Phillips 66 (PSX) has quietly expanded the fractionators at its Sweeny complex on the Texas Gulf Coast, contributing much-needed capacity to handle growth in Permian NGL supply.
PSX disclosed the expansion in its 4Q25 10-K. The company used “engineering and optimization projects” to add 125 Mb/d of capacity at the Sweeny hub, boosting total frac capacity to 675 Mb/d from 550 Mb/d.
The addition has received little attention in the market, despite representing one of the larger recent expansions in Gulf Coast NGL infrastructure. Fractionation capacity has become a primary bottleneck as NGL production expands, particularly from the Permian Basin. In the NGL Hub Model, East Daley Analytics estimates that Mont Belvieu fracs have been running effectively full.
The expansion strengthens Sweeny as one of Phillips 66’s most strategic NGL assets. Located south of Houston, the hub combines large-scale fractionation capacity with storage, refining, petrochemical processing and export infrastructure. The integration allows PSX to participate across multiple segments of the NGL value chain and creates an alternative to Mont Belvieu as a market center.
The timing of the project is notable given continued growth in Gulf Coast NGL supply. While the 125 Mb/d expansion helps temporarily ease the regional bottleneck, growing supply continues to push volumes toward Mont Belvieu.
Phillips 66 is developing another project, the 100 Mb/d Coastal Bend fractionator, which it expects to enter service in 1Q28. The expansions together will add 225 Mb/d of frac capacity along the Gulf Coast. Even with these additions, East Daley forecasts NGL production will continue to outpace capacity, keeping frac utilization at elevated levels and reinforcing the need for additional infrastructure.
The figure shows our outlook in the NGL Hub Model for fractionation demand and utilization on the Texas Gulf Coast. Even including the new Sweeny expansion, we estimate regional fracs are running at capacity; utilization averages 101% in 2026 and 99% in 2027. Rather than alleviating the bottleneck, the PSX project underscores how quickly new infrastructure is filled as Gulf Coast NGL supply continues to expand.
Exports:
NGL exports declined 7.7% W-o-W for the week ending June 19, driven by a modest decrease in LPG exports and a larger decline in ethane exports. The ethane weakness was primarily due to lower shipments from Neches River, as the terminal shifted more of its export capacity toward LPG.
LPG exports fell 3.0% W-o-W, with declines at ET Marcus Hook (-67.6%) and PSX Freeport (-9.4%) partially offset by higher exports from Neches River.
Ethane exports declined 20.9% W-o-W, largely reflecting Neches River’s shift in export mix toward LPG at the expense of ethane during the week.
Rigs:
The total US rig count decreased by 2 rigs to 571 for the week of June 13. Liquids-driven basins declined from 440 to 438 rigs.
- DJ (+1): Petroleum Inc.
- Permian (-2)
- Delaware (-1): Devon Energy
- Midland (-1): Diamondback Energy
- Uinta (-1): Uinta Wax Operating
