C2G Pipeline capitalizes on growing NGL demand

The completion of the Clemens to Gregory pipeline project shows that Phillips 66 is a top-tier player in the rapidly growing natural gas liquids space.

Phillips 66 completed and commissioned the pipeline known as C2G late last year. The 155-mile, 16-inch bidirectional ethane pipeline connects the company’s Clemens Caverns to ExxonMobil and SABIC’s Gulf Coast Growth Ventures, or GCGV, petrochemical facility in Gregory, Texas. Ethane is an NGL and key feedstock in the petrochemical manufacturing of ethylene, a building block for plastics.

Phillips 66 won the bid to construct the pipeline in 2018. The project also included a contract in which Phillips 66 stores and provides ethane to GCGV.

“It was a big deal to win, especially at a time when the Sweeny Hub was still growing,” said NGL Asset Operations Managing Director Drew Creel. “It proved to the market that Phillips 66 is reliable enough for Exxon and SABIC to depend on us to supply their $7 billion project.”

The line’s bidirectional capability is a valuable asset, since it allows for added flexibility in the event of operational disruptions and the optionality to add more customers.   

“It essentially opened up a whole new market for us south of the Sweeny Hub,” said Creel.

The hub is a collection of assets along the U.S. Gulf Coast that includes an NGL fractionation complex at the Sweeny Refinery, underground storage caverns, the C2G pipeline and the nearby Phillips 66 Freeport LPG Export Terminal. Phillips 66 is currently constructing a fourth NGL fractionator at the complex.

The completion of the C2G Pipeline marks the latest accomplishment in the company’s NGL portfolio — a growth strategy for the company since future demand looks promising.

“Global chemicals have been pretty robust, and it’s expected to be going forward, so it will pull along NGL with it,” said Phillips 66 Executive Vice President of Midstream Tim Roberts. “We have a clear vision — we think NGL can continue to be a nice growth segment for us.”