Crosstex Energy LP has received sufficient long-term supply commitments to build its Cajun-Sibon extension, a 130-mile, 12-in. OD NGL pipeline. The pipeline will extend Crosstex’s existing 440-mile Cajun-Sibon NGL system, connecting its NGL fractionation facilities in south central Louisiana to Mont Belvieu supply pipelines in East Texas.
A long-term ethane sales agreement with Williams Olefins LLC, a subsidiary of the Williams Cos. Inc., provides a secure market for project’s key product, Crosstex said. Crosstex is negotiating additional long-term agreements for remaining capacity and expects the new pipeline will begin operations at or near its initial capacity of 70,000 b/d.
Crosstex will begin construction as scheduled in this year’s third quarter, with an additional supply connection added to initial plans. The company expects to put the extension into service first-half 2013. The partnership is also expanding its 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 (OGJ Online, July 26, 2011).
Crosstex estimates the pipeline extension’s cost at $230 million.
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