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Dynegy Grows Louisiana Assets with New NGL Plant

Dynegy Grows Louisiana Assets with New NGL Plant

Dynegy opened a new $57 million gas liquids fractionation facility near Lake Charles, LA, that can separate up to 55,000 barrels/d of gas liquids into ethane, propane and a butane and natural gasoline mix. The facility is fed primarily from offshore production in the Gulf of Mexico via pipeline and truck through Dynegy's Hackberry terminal. Its products are primarily shipped through pipeline to customers in the petrochemical/refining industry in Lake Charles.

Plans to build the fractionation plant were originally announced in September 1997 by Warren Petroleum, a subsidiary of NGC Corp. (now Dynegy). The new facility gives Dynegy three fractionation facilities in the Gulf Coast region with a combined capacity of 295,000 barrels/d.

"It's another important step in the development of our Gulf Coast infrastructure, which includes extensive gathering, processing, distribution and fractionation facilities from Venice, LA, to Mont Belvieu, TX," said Stephen A. Furbacher, president and chief operating officer of Dynegy Mid-Stream Services, the company's natural gas liquids business unit.

The facility connects to Dynegy's 300-mile gas liquids gathering system that extends from Johnson Bayou in Cameron Parish to near Jennings in Jefferson Davis Parish and to 11 underground storage wells the company owns at Hackberry, LA. Dynegy's facilities in Mont Belvieu, TX, are connected via a 12-inch diameter liquids pipeline. The company owns and operates a 205,000 b/d fractionation plant at Mont Belvieu.

The company's Venice Complex, about 75 miles southeast of New Orleans, includes a 35,000 barrel/d gas liquids fractionation facility; a gas processing plant; an underground gas liquids storage facility; a multi-barge gas liquids terminal; and the Venice Gathering System, an extensive offshore gas gathering system. Dynegy is commercial operator and partial owner of the entire complex. Dynegy also owns the Lowry gas processing plant near Lake Arthur, LA, the Barracuda and Stingray gas processing plants near Johnson Bayou and the Seahawk and Pelican offshore gas gathering systems, which serve the Lowry and Barracuda facilities. The company owns additional gas processing plants in Bossier and St. Bernard parishes and interests in seven gas processing plants in southwest Louisiana.

Joe Fisher, Houston

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