(Reuters) -Phillips 66 on Friday set its 2023 capital budget at $2 billion, higher than its forecast for the prior year, as the refiner boosts investments in low-carbon opportunities.
Energy firms have been steadily boosting their investments in lower carbon emission projects over the years amid pressure from governments and climate activists. Oil majors Exxon Mobil Corp and Chevron Corp also raised their 2023 capital allocation this week toward their lower carbon emission businesses.
Phillips said 50% of its growth capital supports low-carbon initiatives, compared to the 45% it allocated in its 2022 plan.
The refiner added the capital allocation is consistent with the company’s commitment to maintain a $2 billion annual budget through 2024.
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 $3.1 billion.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Anil D’Silva and Krishna Chandra Eluri)
