Crosstex Energy LP is proceeding with Phase II of its Cajun-Sibon natural gas liquids (NGL) pipeline extension and fractionator expansion in Louisiana.
Phase II is expected to be completed in the second half of 2014. It will include expansion of the partnership’s Cajun-Sibon pipeline capacity by an 50,000 b/d of raw-make NGL for total capacity of 120,000 b/d; installation of a 100,000 b/d fractionator adjacent to the partnership’s Plaquemine, LA, gas processing plant; modification of the Riverside fractionator; and construction of a 32-mile extension of LIG’s Bayou Jack Lateral to provide gas service to the Mississippi River corridor.
Phase II also will include the installation of four pump stations (13,400 hp total) and construction of 57 miles of NGL pipelines originating at the partnership’s Eunice, LA, fractionator and connecting to the new Plaquemine fractionator.
Crosstex early this year said it was expanding the Cajun-Sibon project (see Shale Daily, Feb. 9).
“Demand for fractionation and NGL handling remains strong as producers aggressively develop liquids-rich natural gas shale plays,” said Crosstex Energy Inc. CEO Barry Davis. “We offer a value-added alternative to the Mont Belvieu fractionation and liquids markets [see Shale Daily, July 27]. We also will improve the reliability and diversity of NGL supply to the Louisiana petrochemical and refining markets.”
Construction of the first phase of the project is under way with operations expected to begin by mid-2013. The total capital investment for both phases of the project is estimated at $680-700 million.
The partnership has entered into 10-year sales agreements with Dow Hydrocarbons and Resources LLC. It will 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. The partnership will also deliver 70,000 million Btu/d of natural gas to Dow’s Plaquemine facility.
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