Crosstex completes Texas gas, Louisiana NGL expansions

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, Apr. 7 -- Crosstex Energy LP has completed two expansion projects on its natural gas gathering system in the Barnett shale in North Texas. Crosstex also reactivated its Eunice natural gas liquids fractionator in south-central Louisiana. The two North Texas projects became operational late March and the Euncie NGL fractionator became operational Apr. 5.

Crosstex built a $25 million, 15-mile pipeline extension as one of the two expansion projects. The extension, supported by volumetric commitments, includes a 7-mile, low-pressure pipeline, an 8-mile, high-pressure pipeline, and a compressor station in southwest Tarrant County, and will carry a peak of more than 100 MMcfd in 2012, according to Crosstex.

Crosstex also entered into a 10-year firm gathering and compression agreement with a major Barnett shale producer for an additional 50 MMcfd of gas on the North Texas gathering system and built a compressor station on an existing gathering line to accommodate the extra transportation requirements. Crosstex believes peak flow rate from the two projects will be 150-175 MMcfd in 2012.

In south-central Louisiana, Crosstex reactivated its Eunice NGL fractionator, idle since 2007, with equipment necessary to accommodate 15,000 b/d of NGLs. The company says an additional 21,000 b/d can be brought online as supplies grow.

The Eunice start-up and expansion project will increase Crosstex’ fractionation capacity to 55,000 b/d from 40,000 b/d. The Eunice complex accesses the southern Louisiana petrochemical and refinery markets and Dixie Pipeline Co.’s 12-in. OD, 35,000 b/d capacity propane pipeline, extending 1,306 miles from Mont Belvieu, Tex, to Apex, NC.

The Eunice complex includes a truck and rail NGL unloading terminal and is connected to onshore natural gas supply in Louisiana and offshore production from the Gulf of Mexico.

Contact Christopher E. Smith at chriss@ogjonline.com.

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