Phillips 66 has begun operations at its new 100,000-bpd natural gas liquids (NGL) fractionator located at the company's Sweeny complex in Old Ocean, Texas, officials announced on Tuesday.

Sweeny Fractionator One supplies purity ethane and liquefied petroleum gases (LPG) to the petrochemicalindustry and heating markets. It is supported by 250 miles of new pipelines and a multi-million barrel storage cavern complex.

“The startup of Sweeny Fractionator One is a significant milestone in the growth of our midstream business,” said Bob Herman, executive vice president of the midstream business at Phillips 66. “We plan to add more capacity in the future to supply our customers LPGs based on affordable North American natural gas liquids.”

The LPGs produced at Sweeny Fractionator One are being delivered via pipeline to local petrochemicalcustomers as well as to the market hub at Mont Belvieu, Texas. 

Phillips 66 will have the capability to place the LPG into global markets upon completion of its 150,000-bpd Freeport LPG export terminal in the second half of 2016, the company explained.

Phillips 66 has a long history in the midstream business segment, including NGL transportation, storage and fractionation. The company owns fractionation capacity at multiple fractionators in Mont Belvieu and Conway, Kansas.

Sweeny Fractionator One and the Freeport LPG terminal represent a combined capital investment of more than $3 billion. The new assets are creating more than 70 full-time jobs in addition to 5,500 construction jobs.