Phillips 66 Joining the LPG Export Parade

Phillips 66  announced today that it is planning to build a liquefied petroleum gas (LPG) terminal in Freeport, Texas. The proposed terminal would provide 4.4 million barrels per month of LPG export capacity. The facility is needed to meet the needs of the growing global market for U. S. energy products. 

According to Tim Taylor, executive vice president, Phillips 66 Commercial, Marketing, Transportation and Business Development, the company is "looking at a rapidly changing energy landscape that presents excellent opportunities in the natural gas liquids (NGL) piece of our Midstream business."

The facility is just one of many recent announcements geared toward increasing LPG export capacity. Enterprise Product Partners  is one recent example as the company announced it was expanding an existing LPG export facility and then followed that up by announcing it plans to build a second export facility.

American oil and gas producers have focused drilling in recent years on the liquids-rich portions of the shale plays. This has increased the output of NGLs like propane and butane. With American markets saturated, producers are looking to export more of these liquefied petroleum gas products. Taylor summed this up by saying that there "are attractive markets outside of the United States for products like butane and propane," which is why Phillips 66 is joining the export parade.

Invest in America's energy boom
Record oil and natural gas production is revolutionizing the United States' energy position. The Motley Fool has uncovered three companies that are leading the way to develop our resources. To find out which three companies are spreading their wings, check out the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 

The article Phillips 66 Joining the LPG Export Parade originally appeared on

Fool contributor Matt DiLallo owns shares of Phillips 66 and Enterprise Products Partners. The Motley Fool recommends Enterprise Products Partners. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story