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Press release from Business Wire

Phillips 66 Seeks to Expand Midstream Business with Proposed LPG Export Terminal to Supply Global Markets

Thursday, October 31, 2013

Phillips 66 Seeks to Expand Midstream Business with Proposed LPG Export Terminal to Supply Global Markets

08:00 EDT Thursday, October 31, 2013

HOUSTON (Business Wire) -- Phillips 66 (NYSE:PSX), an integrated energy manufacturing and logistics company, plans to develop a liquefied petroleum gas (LPG) export terminal in Freeport, Texas. The new terminal is intended to help meet growing global market demand for U.S.-supplied products.

“We are looking at a rapidly changing energy landscape that presents excellent opportunities in the natural gas liquids (NGL) piece of our Midstream business,” said Tim Taylor, executive vice president, Phillips 66 Commercial, Marketing, Transportation and Business Development. “A liquefied petroleum gas terminal downstream of our Sweeny complex supports our growth strategy in Midstream and builds on our strong record of operating excellence, and there are attractive markets outside of the United States for products like butane and propane.”

The proposed LPG export terminal would provide 4.4 million barrels per month of LPG export capacity, the equivalent of eight very large gas carriers (VLGC). It would be located at the site of the company's existing marine terminal in Freeport and utilize existing Phillips 66 midstream, transportation and storage infrastructure to supply petrochemical, heating and transportation markets globally.

Phillips 66 is the only independent energy company with leading segments in midstream, chemicals, refining and marketing and specialties. Its Midstream segment transports crude oil, refined products, natural gas and NGL. It also gathers natural gas and NGL, and through its midstream NGL business processes these feedstocks to power businesses, heat homes and provide raw materials to the petrochemical industry. Phillips 66 owns fractionation capacity at Gulf Coast Fractionators (GCF) and the Enterprise Mont Belvieu Fractionator in Texas, as well as the Conway Fractionator in Kansas. Phillips 66 is the operator of the GCF facility.

The Freeport LPG export terminal would be supplied with LPG from the Mont Belvieu area and from Phillips 66's Sweeny complex at Old Ocean, Texas, including its recently announced Sweeny Fractionator One, which is expected to start up by the second half of 2015.

The export terminal project is currently in the engineering design phase, which includes the process of filing for all applicable permits. Final project approval is anticipated during the first half of 2014 with startup planned for the middle of 2016.

About Phillips 66

Built on more than 130 years of experience, Phillips 66 is a growing energy manufacturing and logistics company with high-performing Midstream, Chemicals, Refining, and Marketing and Specialties businesses. This integrated portfolio enables Phillips 66 to capture opportunities in the changing energy landscape. Headquartered in Houston, the company has 13,500 employees who are committed to operating excellence and safety. Phillips 66 had $51 billion of assets as of Sept. 30, 2013. For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co.

CAUTIONARY STATEMENTS

This press release contains forward-looking statements as defined under the federal securities laws, including projections, plans and objectives. Although Phillips 66 (hereinafter referred to as the “company”) believes that expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. In addition, these statements are subject to certain risks, uncertainties and other assumptions that are difficult to predict and may be beyond the company's control. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, actual results may vary materially from what the company anticipated, estimated, projected or expected. The key risk factors that may have a direct bearing on the forward-looking statements are described in the filings that the company makes with the Securities and Exchange Commission. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than as described. All forward-looking statements in this release are made as of the date hereof and the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Phillips 66
Dennis Nuss, 832-765-1850 (media)
dennis.h.nuss@p66.com
or
Rosy Zuklic, 832-765-2297 (investors)
rosy.zuklic@p66.com

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