Fractionator

Epic Y-Grade LP plans to build a second, 110,000 b/d greenfield natural gas liquids (NGL) fractionator at a South Texas fractionation complex to accommodate more Permian Basin and Eagle Ford Shale volumes, the company announced Thursday.

Williams and Williams Partners said late Monday that they have agreed to sell the companies’ Canadian businesses to Inter Pipeline Ltd. for combined cash proceeds of C$1.35 billion (about US$1.03 billion). Proceeds are to be used to reduce debt at the companies.

Phillips 66 has begun operations at its new 100,000 b/d natural gas liquids fractionator at the company’s Sweeny Complex in Old Ocean, TX. Sweeny Fractionator One supplies purity ethane and liquefied petroleum gas (LPG) to the petrochemical industry and heating markets. It is supported by 250 miles of new pipelines and a multi-million bbl storage cavern complex. More capacity to provide LPG is to be added in the future, the company said. LPG produced at Sweeny Fractionator One is being delivered via pipeline to local petrochemical customers as well as to the market hub at Mont Belvieu, TX. Phillips 66 will have the capability to place the LPG into global markets upon completion of its 150,000 b/d Freeport LPG Export Terminal in the second half of 2016 (see Daily GPI,Nov. 5, 2013).

Alliant Energy’s Iowa utility has accepted a proposed decision and order issued by the Iowa Utilities Board (IUB) for the 600 MW Marshalltown Generating Station (MGS). Assuming regulatory approval, the natural gas-fired plant would be built in central Iowa beginning next year with operations expected to begin in 2017. The IUB approved construction of the plant and included a cost cap of $920 million, and allowed Iowa Power and Light (IPL) to recover in rates the actual cost of the facility. The IUB approved pipeline construction to deliver natural gas to the facility. Construction of the combined-cycle plant is part of IPL’s long-term energy resources strategy, which was unveiled in August 2012. Alliant said earlier this month it is conducting a feasibility study of resource options to address future customer energy and capacity needs in Wisconsin; options include conversion of an existing gas-fired facility from simple-cycle to combined cycle or the construction of a new facility. Alliant’s Wisconsin Power and Light has said it may replace 270 MW of coal-fired electric generation with natural gas-fired units (see Daily GPI, April 24).

Crosstex Energy LPhas completed phase one of the Cajun-Sibon natural gas liquids (NGL) expansion project, which connects the partnership’s Eunice fractionator in South Louisiana to Mont Belvieu, TX, supply pipelines in East Texas. Commercial deliveries of NGL product to the Eunice, Riverside and Plaquemine fractionators began in early October. The Eunice fractionator began operations on Nov. 6 at a rate of 15,000 b/d of NGLs. The pipeline is currently delivering 25,000-30,000 b/d of product into various Louisiana delivery points and is expected to be moving its full volume of 70,000 b/d by the end of 2013. The second phase of the expansion is scheduled for completion in the second-half of 2014 and includes expanding the Cajun-Sibon pipeline capacity by an additional 50,000 b/d to a total of 120,000 b/d; the installation of a 100,000 b/d fractionator adjacent to the partnership’s existing Plaquemine gas processing complex; the modification of the Riverside fractionator facility; and the construction of several natural gas and NGL pipelines to expand the partnership’s capabilities and market connectivity.

Phillips 66 is planning to expand its midstream business with a liquefied petroleum gas (LPG) export terminal to be built at its existing marine terminal in Freeport, TX, the Houston-based company said.

A 12-inch diameter, 38-mile natural gas liquids (NGL) pipeline to be built in a portion of Ohio’s Utica Shale would be capable of delivering 90,000 b/d, Pennant Midstream LLC said Monday.

Sunoco Logistics Partners LP’s (SXL)Sunoco Pipeline LPis holding a binding open season for the Permian Express 2 pipeline to provide additional crude oil takeaway capacity for the Permian Basin. The pipeline would originate at multiple locations in West Texas: Midland, Garden City and Colorado City and have access to several SXL and third-party pipelines to provide producers the ability to reach markets and refineries on the Gulf Coast and in the Midcontinent. “Crude oil production in this basin is projected to increase annually by approximately 200,000 b/d, according to latest industry and consultant estimates,” said SXL CEO Michael Hennigan. “With the ability to reach multiple destinations, including our Nederland terminal, Permian Express 2 is a very attractive, flexible option for shippers.” Information is atwww.sunocologistics.com/permianexpress2.

MarkWest Utica EMG LLC, a partnership between Appalachian midstream provider MarkWest Energy Partners LP and private equity fund The Energy and Minerals Group (EMG), has secured agreements to process and transport Gulfport Energy Corp.’s growing natural gas volumes from three eastern Ohio counties between now and 2014. The partners also are expanding one Utica Shale midstream facility and building a new plant to ensure producers have enough fractionation services available.