The new 130-mile, 12-inch-diameter pipeline will be an extension of the company’s 440-mile Cajun-Sibon NGL pipeline that is connected to its Eunice NGL fractionation facilities in south central Louisiana.
Construction of the new pipeline extension is expected to start in the second quarter of 2012, and the facilities are expected to be operational in the first quarter of 2013.
The new pipeline extension will connect the Eunice fractionation facilities to Mont Belvieu supply pipelines and will have an initial capacity of 70,000 barrels per day of raw-make NGLs, the company said.
The project also includes the expansion of the company’s Eunice NGL fractionation facilities from 15,000 barrels to 55,000 barrels of NGL per day.
Crosstex Energy said its investment for the project is currently estimated at $180m to $220m.
The company has also signed a long-term ethane sales agreement with Williams Olefins, providing a secure market for the key product in the project.
The new NGL pipeline extension will originate from interconnections with major Mont Belvieu supply pipelines.
This will provide connections for NGLs from the Permian Basin, Midcontinent, Barnett Shale, Eagle Ford Shale and Rocky Mountain areas to the company’s NGL fractionation facilities in South Louisiana.
