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Crosstex to build Phase II Louisiana NGL expansion

Crosstex Energy companies, Crosstex Energy LP and Crosstex Energy Inc., will build Phase II of their Cajun-Sibon NGL pipeline extension and fractionator expansion in Louisiana. Phase I construction is underway with a mid-2013 service-date targeted (OGJ Online, Feb. 8, 2012).

Phase II, which Crosstex expects to finish second-half 2014, will include:

• Expansion of the Cajun-Sibon pipeline by an additional 50,000 b/d of raw-make NGL for a total project capacity of 120,000 b/d.

• Installation of a 100,000-b/d fractionator adjacent to the Crosstex’s Plaquemine natural gas processing plant.

• Conversion of its Riverside fractionator to a butanes-plus plant.

• Construction of a 32-mile extension of Crosstex LIG’s Bayou Jack lateral to provide gas services to customers in the Mississippi River corridor.

• Installation of four pump stations totaling 13,400 hp.

• Construction of 57 miles of NGL pipelines starting at Crosstex’s Eunice fractionator and connecting to the new Plaquemine fractionator.

Crosstex entered into 10-year sales agreements with Dow Hydrocarbons and Resources LLC to deliver up to 40,000 b/d of ethane and 25,000 b/d of propane produced at the Plaquemine fractionator into Dow’s Louisiana pipeline system. Crosstex will also deliver 70,000 MMbtu/day of natural gas to Dow’s Plaquemine petrochemical plant.

Phase I of the project includes a 130-mile, 12-in OD. pipeline extending Crosstex’s existing 440-mile Cajun-Sibon NGL pipeline system to connect its Eunice NGL fractionation in south central Louisiana to Mont Belvieu supply pipelines in East Texas. The pipeline will have an initial capacity of 70,000 b/d of raw-make NGL. Phase I also expands the Eunice fractionator to 55,000 b/d from 15,000 b/d, increasing Crosstex’s interconnected fractionation capacity in Louisiana to roughly 97,000 b/d of NGL. Work on the Eunice expansion began in this year’s third quarter.

Crosstex estimates the total cost for both phases of the project at $680-700 million.

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


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