Crosstex Energy (XTEX)(XTXI) Gets Enough Supply Commitments for Cajun-Sibon Extension
Up)
The Crosstex Energy companies, Crosstex Energy, L.P. (Nasdaq: XTEX) (the Partnership) and Crosstex Energy, Inc. (Nasdaq: XTXI), announced that the Partnership has received sufficient long-term supply commitments to proceed with the construction of its Cajun-Sibon extension, a 130-mile, 12-inch-diameter natural gas liquids (NGL) pipeline.
The pipeline will extend the Partnership’s existing 440-mile Cajun-Sibon 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 barrels of NGL per day.
The Partnership will begin construction in the third quarter of 2012 as scheduled. 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 $230 million. The new pipeline and facilities are expected to be operational in the first half of 2013.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
The pipeline will extend the Partnership’s existing 440-mile Cajun-Sibon 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 barrels of NGL per day.
The Partnership will begin construction in the third quarter of 2012 as scheduled. 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 $230 million. The new pipeline and facilities are expected to be operational in the first half of 2013.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
You May Also Be Interested In
- Auxilium (AUXL) Files Suit Against Watson (WPI) Over Testim 1% Gel
- Chinese official has said Chinese banks may fall short of the 2012 lending goal -Bloomberg
- Watson Pharma (WPI) Confirms Patent Challenge on Testim from Auxilium
Create E-mail Alert Related Categories
Corporate NewsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
