HOUSTON (Reuters) -U.S. oil refiner Phillips 66 (NYSE:PSX) on Friday said it will raise spending on new projects next year by about 6%, putting more into renewable fuels and pipeline businesses.
Total capital spending next year will be about $3.14 billion, up from $2.97 billion budgeted this year, with increases for a new plastics plant and to convert a refinery to produce diesel and gasoline from animal fats and cooking oil.
Energy firms have been steadily boosting investments in renewable and lower carbon fuels amid pressure from governments and climate activists. Exxon Mobil Corp (NYSE:XOM) and Chevron Corp (NYSE:CVX) this week said they would increase spending next year on lower carbon emission businesses.
Phillips' spending on refining projects would rise to $1.12 billion, from the $896 million budgeted for this year. Its budget for CP Chemical, a 50/50 joint venture with Chevron, will rise 29% amid work on a new polymer plant.
Phillips said the capital allocation is consistent with its commitment to maintain a $2 billion annual budget through 2024, excluding its joint ventures.
Including the company's proportionate share of capital spending associated with joint ventures CPChem and WRB, Phillips' total 2023 capital program is projected to be $3.14 billion.