Phillips 66 to Build a New Gas Processing Plant in the Permian Basin

Phillips 66 has announced a major expansion of its midstream operations in the Permian Basin, underscoring its commitment to supporting rising U.S. oil and gas production and strengthening its integrated wellhead-to-market strategy.

The centerpiece of this expansion is the construction of the Iron Mesa gas processing plant, a new facility with a capacity of 300 million cubic feet per day (MMcfd), scheduled to begin operations in the first quarter of 2027. Strategically located near the company’s existing 160-MMcfd gas plant in Goldsmith, Ector County, Texas, Iron Mesa will serve both the Delaware and Midland sub-basins, two of the most prolific production areas in the Permian.

This new plant is designed to enhance Phillips 66’s ability to gather and process natural gas from the region, while also enabling upgrades to the existing Goldsmith facility. Portions of the older plant will be retired, and processing performance will be improved, resulting in greater operational efficiency and reliability. The project is part of a broader effort to optimize the company’s cost structure and increase the stability of cash flows in a dynamic market environment.