Under this phase of the project, the company will expand the capacity of the NGL pipeline by 50,000 barrels per day (bpd) of raw-make NGL thereby increasing the total capacity of the Cajun-Sibon pipeline to 120,000 bpd.
Crosstex will also install a 100,000 bpd fractionator near its Plaquemine natural gas processing plant; modify its Riverside fractionator facility; and build a 51.4km extension of LIG’s Bayou Jack Lateral to supply gas in Mississippi River corridor.
In addition, the company will install four pump stations; build 91.7km of NGL pipeline from its Eunice fractionator and connect to the new Plaquemine fractionator.
As per a 10-year sales agreement with Dow Hydrocarbons and Resources, Crosstex will supply up to 40,000 bpd of ethane and 25,000 bpd of propane produced at the new Plaquemine fractionator into Dow’s Louisiana pipeline system.
The company will also deliver 70,000 million British thermal units of natural gas per day to Dow’s Plaquemine facility.
Crosstex Energy president and chief executive officer Barry E Davis said the market continues to be supportive of the firm’s Cajun-Sibon project.
"With an estimated combined adjusted EBITDA of $115 to $130 million, we believe Phases I and II will significantly increase our PNGL assets’ contribution to the bottom line, creating significant value for our investors," Davis added.
The first phase of the pipeline is under construction and is expected to begin services by mid-2013, whereas the second phase is expected to be completed in the second half of 2014.
The total investment in both the phases is estimated to be between $680m to $700m.
