Crosstex expands Eunice NGL fractionation; extends pipeline

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, July 26 -- Crosstex Energy LP is completing engineering studies, pipeline routing, and environmental permitting for an expansion of its Eunice NGL fractionation facilities and extension of its Cajun-Sibon NGL pipeline.

A 130-mile, 12-in. OD line will connect the Eunice fractionation facilities to Mont Belvieu supply pipelines, extending Crosstex’s 440-mile Cajun-Sibon NGL pipeline, and will have an initial capacity of 70,000 b/d of raw-make NGLs. Crosstex will expand the Eunice NGL fractionation facilities to 55,000 b/d from 15,000 b/d, increasing its interconnected fractionation capacity in Louisiana to about 97,000 b/d.

Construction of the NGL pipeline will begin in second-quarter 2012 and Crosstex expects the facilities to enter service first-quarter 2013. Crosstex estimates project costs at $180-220 million.

Crosstex has entered into a long-term ethane sales agreement with Williams Olefins LLC, a subsidiary of Williams Cos. The ethane will flow into Williams’ ethane pipeline system in Louisiana. Crosstex will feed its expansion from both its own Texas gas plants and supplies from other companies. The company is negotiating additional long-term commitments for the system expansion.

Crosstex says the project will improve the reliability and diversity of NGL supply to the Louisiana petrochemical and refinery markets. The company reached agreement with Apache Corp. earlier this month to jointly develop a gas processing plant in the Permian basin in West Texas (OGJ Online, July 12, 2011). Permian supplies are among those Crosstex expects to transport through its new pipeline.

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

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