US-based energy company Phillips 66 has unveiled a $1.9bn capital programme for 2022 as it seeks to prioritise shareholder returns and reduce debt.
The capital programme for next year includes $992m for sustaining capital and $916m for growth capital.
Approximately 45% of growth capital will be used for lower-carbon opportunities.
Phillips 66 chairman and CEO Greg Garland said: “The 2022 capital programme demonstrates our commitment to disciplined capital allocation.
“Our plan for sustaining capital reflects our ongoing focus on operating excellence, to ensure the safety and reliability of our operations.
“We are also investing in returns-focused growth opportunities, including projects that will help us advance a lower-carbon future. In addition to a disciplined capital programme, we will continue to prioritise debt reduction and returns to shareholders.”
The company has allocated $703m for the midstream sector.
It includes $426m for growth capital that will be used to complete the construction of the Sweeny Frac Four fractionator and repay its 25% of the debt related to the Bakken Pipeline.
The company plans to invest $896m in refining, including $488m for reliability, safety, and environmental projects.
The remaining $408m of the amount will be invested in the reconfiguration of the San Francisco refinery in Rodeo, California.
The project is expected to be completed by early 2024, following which, the facility will have an initial renewable fuel production capacity of more than 50,000 barrels per day.
Phillips 66 allocated $144m for the marketing and specialities department, and $165m for the corporate and other purposes department.
Headquartered in Houston, Phillips 66 is a multinational company focusing on the midstream, chemical, refining, and marketing and specialities business sectors.
In October, the company signed deal to acquire the remaining stake in Phillips 66 Partners (PSXP) in an all-stock deal worth $3.4bn.