Phillips 66 (NYSE: PSX) announced plans to build the Zeus Gas Plant and a third Coastal Bend Fractionator, both expected to be operational in 2028, according to a company statement.

The Zeus facility will be a 300 million cubic feet per day gas processing plant in the Permian Basin. The project includes the new Midland Express Pipeline, a 45-mile, 20-inch line that will integrate Phillips 66's Permian Basin gathering systems and move up to 230 million cubic feet per day of wellhead gas.

The third Coastal Bend Fractionator will be a 100,000 barrels per day natural gas liquids fractionator located in Robstown, Texas. The facility will include NGL purity pipeline expansion and water treatment facilities.

"Zeus Gas Plant and a third Coastal Bend Fractionator will strengthen our ability to move growing Permian volumes across an integrated value chain, from the wellhead to key market centers," said Don Baldridge, executive vice president of Midstream at Phillips 66.

Both projects fall within Phillips 66's stated capital spending range of $2.0 billion to $2.5 billion. The company maintains its commitment to reduce debt to $17 billion by year-end 2027 and return more than 50% of net operating cash flow, excluding working capital, to shareholders.

The projects are designed to support growing Permian production from Phillips 66 customers' dedicated acreage by adding processing and fractionation capacity. The company expects Permian production to grow over the next five years.