Crosstex Energy initiates Phase II of Cajun-Sibon NGL pipeline extension

12/11/2012

Crosstex Energy initiates Phase II of Cajun-Sibon NGL pipeline extension

DALLAS -- Crosstex announced that the partnership is proceeding with Phase II of the Cajun-Sibon natural gas liquids (NGL) pipeline extension and fractionator expansion in Louisiana. In addition, construction of Phase I of the project is underway and is expected to commence operations by mid 2013. The total capital investment for both phases of the project is currently estimated at $680-$700 million.

Demand for fractionation and NGL handling remains strong as producers aggressively develop liquids rich natural gas shale plays.

Phase II, which is expected to be completed in the second half of 2014, will include the following: the expansion of the partnership’s Cajun-Sibon pipeline capacity by an additional 50,000 bpd of raw make NGL for a total project capacity of 120,000 bpd the installation of a 100,000 bpd fractionator.

The partnership announced that it has entered into 10 year sales agreements with Dow Hydrocarbons and Resources. Under the sales agreements, the partnership will deliver up to 40,000 bpd of ethane and 25,000 bpd of propane produced at the Partnership’s new Plaquemine fractionator into Dow’s Louisiana pipeline system. The partnership will also deliver 70,000 million British thermal units of natural gas per day to Dow’s Plaquemine facility.

This project is a tremendous step forward as we continue to enhance scale and diversity and grow our integrated NGL system and optimize our assets . Demand for fractionation and NGL handling remains strong as producers aggressively develop liquids rich natural gas shale plays.

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