Phillips 66 has announced plans to construct a new natural gas processing plant in the Permian Basin, reinforcing its strategy to expand natural gas liquids (NGL) infrastructure in one of the U.S.’s most prolific production regions.
The Iron Mesa plant, expected to begin operations in Q1 2027, will have a processing capacity of 300 million cubic feet per day. The facility will serve rising demand in the Delaware sub-basin and integrate seamlessly with Phillips 66’s existing pipeline and fractionation network.
Chairman and CEO Mark Lashier said the project underscores the company’s long-term commitment to its midstream business and will enhance reliable NGL takeaway capacity in the region.
The investment follows Phillips 66’s recent acquisition of EPIC Y-Grade GP LLC and EPIC Y-Grade LP and aligns with its broader efforts to expand fractionation capacity and connectivity across the Gulf Coast and West Texas.
The company reported $487 million in Q1 earnings and reiterated its focus on optimizing its midstream portfolio for sustained growth.