The pipeline will extend the Partnership’s existing 708 km Cajun-Sibon natural gas liquids (NGL) system and connect Crosstex’s NGL fractionation facilities in south central Louisiana to Mont Belvieu supply pipelines in east Texas.
The extension allows the Partnership to provide producers and midstream companies an attractive alternative market for their NGL production at Mont Belvieu pricing. The Partnership is currently negotiating additional long-term agreements for the remaining capacity and expects the new pipeline will begin operations at or near its initial capacity of 70,000 bbl/d of NGL.
The Partnership has scheduled the construction to begin in the third quarter of 2012. Due to strong supplier interest, the pipeline project has been expanded since it was announced in July 2011, and now includes an additional supply connection. The total capital investment is now estimated at $US230 million.
The new pipeline and facilities are expected to be operational in the first half of 2013.
