Crosstex Energy companies, Crosstex Energy, L.P. (the Partnership) and Crosstex Energy, Inc. (the Corporation), announced that commercial contracting is complete for Phase I of the Partnership’s Cajun-Sibon natural gas liquids (NGL) extension and Eunice fractionator expansion.
With contracts for third-party volumes in excess of 60,000 bpd and the Partnership’s equity volumes, the Partnership expects to begin operations at the project’s initial capacity of 70,000 bpd.
Phase I includes a 130-mile, 12-inch pipeline that will extend the Partnership’s existing 440-mile Cajun-Sibon NGL pipeline system and connect Crosstex’s Eunice NGL fractionation facility in south central Louisiana to Mont Belvieu supply pipelines in East Texas. As part of the project, the Eunice fractionator will be expanded from 15,000 bbls to 55,000 bbls of NGL per day, increasing the Partnership’s interconnected fractionation capacity in Louisiana to 97,000 bpd of NGLs.
The Partnership expects that Phase I facilities will be operational in the second quarter of 2013. The capital cost for the Phase I project is $230 million.
Crosstex also announced that it is finalizing engineering and has begun negotiating long-term agreements for Phase II of the project, which is being developed in response to the strong interest shown by both midstream and producer customers. Phase II would provide transportation and fractionation capacity for an incremental 50,000 bpd of NGL as an alternative to Mont Belvieu. If implemented, the Phase II expansion could be completed in 2014.