Crosstex Energy LP recently announced that it would be expanding its Eunice natural gas liquids (NGL) fractionation facilities and extending its Cajun-Sibon NGL pipeline.
According to the Oil & Gas Journal, the Dallas-based company is finishing up the permitting process, engineering studies and pipeline routing to accomplish these goals.
A 130-mile pipeline – which will be 12 inches thick – will connect the Eunice fractionation facility with Mont Belvieu supply pipelines, which will increase the company's NGL capacity. Crosstex said that it expects the facilities to be serviceable by the first quarter of 2013 and that it will cost around $200 million.
Crosstex President and Chief Executive Officer Barry E. Davis said that demand in these areas was expanding.
"There is increasing demand for fractionation and NGL handling as producers pursue the development of liquids-rich natural gas shale plays," he said. "We will be able to offer our midstream and producer customers an integrated NGL transportation, fractionation and marketing alternative to Mont Belvieu."
Crosstex also recently entered and agreement with Apache Corp. to open a natural gas processing facility in Texas, according to the Odessa American.
According to Raymond James, NGL streams rich in condensate and butane will likely receive the best pricing.