Phillips 66 announced it will build a new natural gas processing plant in the Permian Basin, advancing its strategy to expand natural gas liquids (NGL) infrastructure in one of the nation’s most productive basins.
The Iron Mesa plant, slated to begin operations in the first quarter of 2027, will have a processing capacity of 300 million cubic feet per day. The project supports growing regional demand and reflects Phillips 66’s long-term commitment to its midstream business.
Chairman and CEO Mark Lashier said the plant will enhance the company’s ability to provide reliable NGL takeaway capacity in the Delaware sub-basin, where production volumes continue to rise. The facility is expected to be fully integrated into Phillips 66’s existing pipeline and fractionation network.
The decision follows the company’s recent acquisition of EPIC Y-Grade GP LLC and EPIC Y-Grade LP, and complements ongoing investments in fractionation capacity and connectivity across the Gulf Coast and West Texas.
Phillips 66 reported $487 million in earnings for Q1 and reaffirmed its plan to continue optimizing its midstream portfolio for future growth.
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