Phillips 66’s 2021 capital budget includes engineering, design costs for Rodeo refinery conversion
Phillips 66 has announced its 2021 capital budget of $1.7 billion, which includes $255 million of growth capital within its overall refining budget of $776 million “to fund high-return, quick-payout projects to enhance margins by improving clean product yields and reducing feedstock costs, as well as investments to competitively position the company for a lower carbon future,” stated the company.
The refining budget includes preconstruction engineering and design costs for conversion of its San Francisco Refinery in Rodeo, California, to manufacture renewable diesel and sustainable aviation fuel. Once completed in early 2024, the site would be capable of producing more than 800 MMgy.
“We continue to focus on reducing capital expenditures as market conditions remain challenged,” said Greg Garland, chairman and CEO of Phillips 66. “We are prioritizing completion of in-progress projects, as well as advancing our investments in renewable fuels. Phillips 66 is committed to financial flexibility, enabled by our balance sheet and strong investment grade credit ratings.”
For more information on Phillips 66’s 2021 capital budget, click here.