Energy Transfer Partners to Invest $1.5B in Western Pa.
DALLAS – Energy Transfer Partners L. P. said Monday that it would spend about $1.5 billion to build a natural gas liquids processing system that would include the construction of new cryogenic plant in western Pennsylvania.
The company did not disclose the precise location for the plant but did specify that it would build 100 miles of a 24-inch and 30-inch new pipeline network that begins in Butler County, Pa..
The project – dubbed the Revolution Pipeline – will provide total system capacity in excess of 440 million cubic feet of natural gas per day, Energy Transfer Partners said. The company expects the cryogenic plant will be in service by the second quarter of 2017.
Energy Transfer Partners has entered into long-term agreement with EdgeMarc Energy that governs gas gathering, processing and fractionation. Energy Transfer has purchased approximately 20 miles of high-pressure pipeline and committed to build a cryogenic and fractionation plant, the company reports.
The company said it plans to tap into rich natural-gas deposits in the stacked Marcellus and Devonian shale plays.
EdgeMarc leases about 25,000 acres in Butler County and has drilled more than 20 wells there.
“This project provides us with an effective gathering and processing solution for our approximately 500 laterals that will be drilled to access rich gas from stacked Devonian and Marcellus shale formations in Butler County, Pa., and enables access to highly coveted markets for our residue gas and natural gas liquids,” said EdgeMarc CEO Chuck VanAllen.
Residue gas will be pumped into Energy Transfer’s Rover Interstate pipeline for deliveries to downstream markets. The natural gas liquids will be delivered to Sunoco Logistics Mariner East Pipeline system for use in domestic and export markets, the company said.
Energy Transfer Partners reported May 8 that net income attributable to partners was $284 million for the three months ended March 31, compared to $168 million for the three months ended March 31, 2014, an increase of $116 million.
The master limited partnership’s subsidiaries include Panhandle Eastern Pipe Line Company LP and Lone Star NGL LLC, which owns and operates natural gas liquids storage, fractionation and transportation assets. ETP owns and operates more than 62,000 miles of natural gas and natural gas liquids pipelines. The company also owns the general partner, 100% of the incentive distribution rights, and 67.1 million common units in Sunoco Logistics Partners LP, which operates crude oil and refined products pipelines, terminals and crude oil acquisition and marketing assets.
SOURCE: Energy Transfer Partners.
Copyright 2019 The Business Journal, Youngstown, Ohio.
Published by The Business Journal, Youngstown, Ohio.
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