“This project is a tremendous step forward as we continue to enhance our scale and diversity and grow our integrated NGL system and optimize our assets,” Davis added. “Demand for fractionation and NGL handling remains strong as producers aggressively develop liquids-rich natural gas shale plays. We offer a value-added alternative to the Mont Belvieu fractionation and liquids markets. We also will improve the reliability and diversity of NGL supply to the Louisiana petrochemical and refining markets.”
Phase I includes a 130-mile, 12-inch-diameter pipeline that will extend the Partnership’s existing 440-mile Cajun-Sibon NGL pipeline system, connecting its Eunice NGL fractionation facility in south central Louisiana to Mont Belvieu supply pipelines in East Texas. The pipeline will have an initial capacity of 70,000 barrels per day of raw-make NGL. As part of Phase I, the Partnership’s Eunice fractionator is being expanded from 15,000 barrels to 55,000 barrels of NGL per day, increasing the Partnership’s interconnected fractionation capacity in Louisiana to approximately 97,000 barrels per day of NGL. The Eunice expansion began in the third quarter of 2012. It is expected that Phase I facilities – both the pipeline and the expanded fractionation plant – will be in operation by mid-2013.
The Phase I NGL pipeline extension will originate from interconnects with major Mont Belvieu supply pipelines, providing connections for NGL from the Permian Basin, Midcontinent, Barnett Shale, Eagle Ford Shale and Rocky Mountain areas to the Partnership’s NGL fractionation facilities in South Louisiana. The Partnership’s facilities in South Louisiana provide access to markets for all components of the NGL barrel.
About the Crosstex Energy CompaniesCrosstex Energy, L.P., a midstream natural gas company headquartered in Dallas, operates approximately 3,500 miles of natural gas, natural gas liquids, and oil pipelines, 10 processing plants and four fractionators. The Partnership also operates barge terminals, rail terminals, product storage facilities, brine water disposal wells and an extensive truck fleet.