OREANDA-NEWS. February 25, 2014. Energy Transfer Partners, L.P. (NYSE:ETP) announced it has entered into a long-term agreement with XTO Energy Inc., a subsidiary of Exxon Mobil Corporation, to provide midstream services for natural gas produced from certain XTO wells in the Permian Basin.

ETP will construct a 130 million cubic feet per day cryogenic processing plant in Glasscock County, Texas with expansion capability to 200 million cubic feet per day and will build over 100 miles of high pressure and low pressure gathering pipelines connecting to the plant. The new plant and gathering lines are expected to be in service in the third quarter of 2014.

The construction of these new midstream assets in the Permian Basin will expand ETP’s strategic initiative to provide a full breadth of midstream services in one of the most active liquids-rich plays in the country. The project also provides additional revenue opportunities downstream of the plant, with connectivity to assets held by ETP. These assets include the Energy Transfer Fuel gas transmission system, and the Lone Star NGL pipeline system, which will deliver the NGL barrels to Lone Star’s fractionating facilities at Mont Belvieu.