Phillips 66 announced an agreement to acquire the Lindsey Oil Refinery assets in North Killingholme, U.K., marking the company’s first major refining investment in the region. The Lindsey facility, which has a processing capacity of approximately 220,000 barrels per day, will be integrated with Phillips 66’s existing Humber operations. Management expects the combined complex to process more than 500,000 barrels per day of crude and intermediate feedstocks, enhancing feed flexibility and supporting the U.K. government’s goal of bolstering domestic energy security. The transaction value was not disclosed, but Phillips 66 noted that synergies from shared logistics, blending, and storage infrastructure could deliver annual cost savings in excess of $50 million within two years of closing, targeted for the third quarter of 2026.

On its most recent quarterly call, CFO Kevin Mitchell confirmed that two Phillips 66 refineries on the U.S. Gulf Coast have the technical capability to process up to 100,000 barrels per day of heavy Venezuelan crude once supply becomes available. The Sweeny, Texas, and Lake Charles, Louisiana, facilities will leverage existing coker units and hydrocracking capacity to convert the high-sulfur, high-metal feedstock into transportation fuels and petrochemical feedstocks. Management estimates that incremental margin capture on discounted Venezuelan crude could add $5 to $8 per barrel of refining margin, subject to future quality and logistics considerations.

At the Goldman Sachs conference, Phillips 66 CEO Mark Lashier detailed key priorities for 2026, including a targeted 3% increase in overall refining throughput and a 10% reduction in greenhouse gas emissions intensity across all business segments by year-end. The company plans to invest $1.2 billion in advanced biofeedstock integration at its San Francisco and Humber complexes, alongside a $600 million upgrade of sulfur recovery units at the Ponca City refinery. Lashier also highlighted ongoing negotiations for a potential joint venture in renewable diesel production, expected to add 100,000 barrels per day of capacity by 2028.