Energy Transfer LP, Dallas, is evaluating a new Permian basin natural gas takeaway project that would use existing partnership assets and a new pipeline to connect Permian supply to markets along the Gulf Coast, including the Houston Ship Channel, Katy, Carthage, and Henry Hub.
The company noted the evaluation as part of its fourth-quarter 2021 and full-year 2021 results released Feb. 17.
Energy Transfer had net income attributable to partners for fourth-quarter 2021 of $921 million, an increase of $412 million compared to the same period last year.
Adjusted EBITDA for the quarter was $2.81 billion compared to $2.59 billion for the same period last year. The improved results were primarily driven by increased NGL transportation and export volumes, higher realized commodity prices, and the Enable Midstream Partners LP acquisition. Energy Transfer’s NGL business also had record transportation and fractionation volumes in the quarter.
Growth capital expenditures in 2021 were $1.40 billion, which was $200 million less than expected due to project deferrals into 2022. Maintenance capital expenditures were $522 million. The company is updating its 2022 growth and maintenance capital expenditures outlook because of the recently closed Enable acquisition and growing demand for midstream infrastructure.
The partnership expects 2022 growth capital expenditures of $1.6-1.9 billion, which includes the addition of new capital projects expected to be completed by yearend. Maintenance capital expenditures of $615-665 million are planned for the year. Adjusted EBITDA is expected to be $11.8-12.2 billion.
Operations
In February 2022, construction of the final phase of the Mariner East project was completed and commissioning is in progress. Energy Transfer’s Mariner East system will now include multiple pipelines across Pennsylvania connecting the Marcellus and Utica basins in the west to markets throughout the state and the broader region, including Energy Transfer’s Marcus Hook terminal on the east coast.
In first-quarter 2022, construction began on the Gulf Run pipeline project. The 1.65 bcfd 42-in. pipeline is expected to be completed by yearend and will provide natural gas transportation between Haynesville shale basin and the gulf coast.
In fourth-quarter 2021, Phase II of the Cushing South pipeline project was launched and is expected to nearly double the project’s oil pipeline capacity to 120,000 b/d. This project primarily utilizes existing facilities to provide additional connectivity across Energy Transfer’s mid-continent and gulf coast crude oil network.
In October 2021, Energy Transfer brought online a three million barrel high-rate storage well at its Mont Belvieu plant, which now includes 24 wells with NGL storage capacity of about 53 million bbl.
In October 2021, the company completed its Permian Bridge project, providing increased connectivity and efficiency between the partnership’s natural gas gathering and processing assets in the Delaware basin and its assets in the Midland basin.
