Energy Transfer Partners Announces New Processing Plants
OREANDA-NEWS. November 11, 2014. Energy Transfer Partners, L.P. (NYSE: ETP) today announced that it has entered into additional long-term gas gathering and processing agreements with producers in the growing Eagle Ford and Eaglebine production areas of south and southeast Texas. To facilitate these agreements, ETP has begun construction on two new cryogenic gas processing plants and additional gas gathering pipelines.
East Texas Plant
The East Texas Plant, a 200 million cubic feet per day cryogenic gas processing plant, will be constructed and installed east of the Partnership’s La Grange Plant. The new plant is expected to be constructed and placed in-service by the fourth quarter of 2015. The Volunteer Pipeline, as further detailed below, will deliver rich gas to the East Texas Plant for processing with the resulting natural gas liquids and residue gas delivered to Lone Star NGL LLC’s pipeline and ETP’s Southeast Bossier 42-inch gas pipeline, respectively.
Volunteer Pipeline
The approximate 70-mile, 24-inch Volunteer Pipeline will have an initial capacity of 200 million cubic feet per day that will be expandable to over 400 million cubic feet per day with the addition of compression. The Volunteer Pipeline will originate in eastern Brazos County, Texas at an interconnect with ETP’s Southeast Texas Pipeline System, a gas gathering system consisting of over 5,000 miles of pipe and over 80,000 horsepower of compression, and will extend to the Partnership’s new East Texas Plant. The pipeline is expected to be constructed and placed in-service by the fourth quarter of 2015.
REM Eagle Ford Plant II
Also in light of ETP’s continuing success in securing long-term, fee-based gathering and processing agreements along ETP’s REM system, the Partnership has started construction of a new 200 million cubic feet per day cryogenic gas processing plant in the Eagle Ford production area that is expected to be online by June of 2015. This plant will be fully subscribed once it is on line and will deliver the residue gas into ETP’s HPL intrastate pipeline system and the natural gas liquids into Lone Star NGL LLC’s pipeline system. By the end of 2015, ETP expects to have in service approximately 1.8 billion cubic feet per day of cryogenic processing capacity in the Eagle Ford and Eaglebine plays in south and southeast Texas with expected NGL barrels recovered reaching 250,000 barrels per day.
The East Texas Plant, REM Eagle Ford Plant II and Volunteer Pipeline projects, estimated to cost between USD375 and USD 410 million in aggregate, will add to ETP’s ever-growing presence in south and southeast Texas where ETP has already spent in excess of \\$3 billion on pipelines, plants and associated infrastructure in the last several years, resulting in strong distributable cash flow to the Partnership.
Energy Transfer Partners, L.P. (NYSE: ETP) is a master limited partnership owning and operating one of the largest and most diversified portfolios of energy assets in the United States. ETP currently owns and operates approximately 35,000 miles of natural gas and natural gas liquids pipelines. ETP also owns 100% of Panhandle Eastern Pipe Line Company, LP (the successor of Southern Union Company) and a 70% interest in Lone Star NGL LLC, a joint venture that owns and operates natural gas liquids storage, fractionation and transportation assets. ETP also owns the general partner, 100% of the incentive distribution rights, and approximately 67.1 million common units in Sunoco Logistics Partners L.P. (NYSE: SXL), which operates a geographically diverse portfolio of crude oil and refined products pipelines, terminalling and crude oil acquisition and marketing assets. ETP owns 100% of Sunoco, Inc. and 100% of Susser Holdings Corporation. Additionally ETP owns the general partner, 100% of the incentive distribution rights and approximately 44% of the limited partnership interests in Sunoco LP (formerly Susser Petroleum Partners LP) (NYSE: SUN), a wholesale fuel distributor and convenience store operator. ETP’s general partner is owned by ETE. For more information, visit the Energy Transfer Partners, L.P. web site at www.energytransfer.com.
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