Houston-based Phillips 66 said Monday its 2026 capital budget of $2.4 billion includes Iron Mesa gas processing plant at Goldsmith in Ector County in the Permian Basin. This budget includes $1.1 billion for sustaining capital and $1.3 billion for growth capital. Iron Mesa, with capacity of 300 million cfd, is expected to start in first quarter of 2027.
This budget includes $1.1 billion for Phillips 66’s midstream segment, including $400 million for sustaining projects and $700 million for growth projects such as Iron Mesa.
Mark Lashier, chairman and CEO, said, “The 2026 capital budget reflects our ongoing commitment to capital discipline and maximizing shareholder returns. We are investing growth capital in our NGL value chain and high-return refining projects.” Phillips 66 said the projects in this budget organically advance the company’s integrated NGL wellhead-to-market strategy by increasing gas processing, pipeline and fractionation capacity in key basins.
Also included among the growth capital projects is Coastal Bend NGL pipeline expansion that will increase capacity from 225,000 b/d to 350,000 b/d and enhance connectivity between production in Permian Basin and Eagle Ford to fractionators in Corpus Christi and Sweeny. This expansion is expected to be completed in 2026Q4.