Crosstex completes contracts for Lousiana NGL pipeline

By OGJ editors

Crosstex Energy LP and Crosstex Energy Inc., both of Dallas, have completed commercial contracting for Phase I of Crosstex Energy LP’s Cajun-Sibon NGL extension and Eunice fractionator expansion.

With contracts for third-party volumes exceeding 60,000 b/d and the partnership’s equity volumes, Crosstex Energy LP expects to begin operations at the project’s initial capacity of 70,000 b/d.

Phase I includes a 130-mile, 12-in. OD pipeline that will extend the existing 440-mile Cajun-Sibon NGL pipeline and connect Crosstex’s Eunice NGL fractionator in south central Louisiana to Mont Belvieu supply pipelines in East Texas.

As part of the project, the Eunice fractionator will also be expanded to 55,000 b/d from 15,000 b/d, increasing the partnership’s interconnected fractionation capacity in Louisiana to about 97,000 b/d of NGLs.

Crosstex Energy LP expects that Phase 1 will be operating in second-quarter 2013 at a capital cost of about $230 million, said the company announcement.

Crosstex also announced it is finalizing engineering and has begun negotiating long-term agreements for Phase II of the project. This phase would provide transportation and fractionation capacity for an incremental 50,000 b/d of NGL as an alternative to Mont Belvieu. If implemented, the Phase II expansion could be completed in 2014.

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