Energy Transfer mulls Marcellus gathering project
The Revolution project, expected to cost about \$1.4bn, would bring gas to the company's Rover pipeline and additional NGL products to Sunoco Logistics' Mariner East pipeline project. ETP said details surrounding the project could be released as soon as next week.
"We've already secured capacity on Rover from this project. We also have secured capacity from Mariner East … for this project, and it'll do nothing but continue to feed residue volumes into Rover and other products into projects," ETP said today on an earnings call.
Additionally, ETP said it is pursuing the Bayou Bridge project with Phillips 66, which will directly link the Nederland, Texas, facility to refining markets in Lake Charles and Saint James, Louisiana. ETP completed its open season on the crude project with hopes of making an official announcement in the near future.
ETP said it realizes the need to export more propane and ethane from the US and is optimistic that the LPG export terminals in Nederland and Marcus Hook, Pennsylvania, will play a significant role in alleviating that need.
ETP's 200,000 b/d Mariner South pipeline project transports export grade propane and butane from Lone Star NGL's storage and fractionation complex in Mont Belvieu, Texas, to Sunoco Logistics' terminal in Nederland, Texas. Butane capabilities came online in the second quarter.
In addition to the propane and butane, Mariner South could be available for other NGLs and petroleum products depending on shipper interest.
In March, ETP acquired the \$370mn King Ranch project from ExxonMobil which includes a 42,000 b/d NGL fractionator and a NGL pipeline that transports product from Kingsville, Texas, to Corpus Christi, Texas.
Earlier this week, ETP announced its subsidiary LST will build a fourth 120,000 b/d fractionator at its site at Mont Belvieu.
The announcement comes about five months after LST announced the construction of a third 100,000 b/d fractionator. Both fractionators are currently under construction and once completed will bring total fractionation capacity to 440,000 b/d.
NGL transportation volumes for the first quarter increased year-on-year by more than 131,135 b/d to 438,646 b/d, while average daily fractionated volumes increased more than 69,000 b/d to 226,041 b/d due to the ramp-up of its second 100,000 b/d fractionator at Mont Belvieu.
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