Reports related to this article:
Project(s): View 7 related projects in PECWeb
Plant(s): View 7 related plants in PECWeb
Released August 10, 2018 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--After facing several regulatory hurdles, Energy Transfer Partners LP's (NYSE:ETP) (Dallas, Texas) Rover and Mariner East 2 pipelines appear as though they are nearing completion and approaching full service. Energy Transfer also continues construction of other pipelines and gas processing plants.
In a conference call discussing the company's second-quarter 2018 results, Energy Transfer Chief Financial Officer Tom Long gave an update on some of the company's major projects. The Rover natural gas pipeline is a 713-mile pipeline to transport up to 3.25 billion cubic feet per day (Bcf/d) of natural gas from the Marcellus and Utica shales to various hubs in Michigan, Ohio and Ontario for distribution. The pipeline has faced many hurdles during construction, including the delay of construction due to leaked drilling fluids. Restoration of the area where the pipeline was laid is now one of the aspects hindering parts of the project from beginning service, although the mainline of the project is in service.
In late June, the U.S. Federal Energy Regulatory Commission (FERC) said that a review of future in-service requests "will depend, in part, on a demonstration of Rover's commitment to satisfactory restoration of construction areas and workspaces." Long gave an update on this aspect of the project.
Long said, "Rover is now 100% mechanically complete. For our overall project restoration activities, rough cleanup is 99% complete; final cleanup is 81% complete; and revegetation is 78% complete. We expect to have all these restoration activities 100% complete this month. We submitted in-service requests to FERC for Majorsville [West Virginia] on May 7 and Burgettstown [Pennsylvania] on February 13."
The project had an overall total investment value of $4.2 billion. For more information, see Industrial Info's project reports on the Majorsville and Burgettstown pipeline laterals.
Energy Transfer also constructed a cryogenic natural gas processing plant in Pennsylvania to support Rover. "Our Revolution processing plant is complete, and we expect it go into service once Rover has received full approval of the remaining supply laterals," said Long. Construction on the $250 million plant began in summer 2016, with ISTI Plant Services Incorporated (Tulsa, Oklahoma) providing engineering, procurement and construction (EPC). The facility will have a processing capacity of 440 million cubic feet per day. For more information, see Industrial Info's project report.
Construction on the company's other major pipeline project, the Mariner East 2 (ME2) and ME2X natural gas liquids (NGLs) pipelines also is approaching a major milestone. The pipelines will carry NGLs from the Marcellus and Utica shales to destinations in Pennsylvania, including the company's Marcus Hook industrial complex, where NGLs are stored, processed and distributed. Earlier this year, a judge halted construction of ME2 near West Whiteland Township, Pennsylvania, saying that it was a danger to the public. Long said, "We continue to make progress on the construction of ME2, with 99% of mainline construction complete and 80% of hydrotesting complete. In addition, 100% of HDDs [horizontal directional drilling] are completed or in process, in line with our approved HDD plan. ... The Pennsylvania PUC's [Public Utility Commission] commissioners have overturned the prior decision that prevented continued construction in West Whiteland Township. To avoid any delays in the ME2 project schedule, we will use utilize a section of an existing pipeline ... for initial in-service. This plan does not require any new permits, and we have made all applicable regulatory notification. As a result, we continue to expect to place ME2 in service by the end of this quarter. ... Construction of ME2X also continues, and we expect the pipe to be online in mid-2019." For more information, see Industrial Info's project report on ME2 and ME2X.
Long also spoke of the company's processing plants in Texas. "The 200 million-cubic-foot-per-day Rebel 2 processing plant in the Midland Basin went into service at the end of April. The volumes are ramping up, and we expect it to be full by yearend." Construction on the Rebel 2 processing plant began in summer 2017 and will bring total plant capacity to 330 million cubic feet per day. Optimized Process Designs LLC (Katy, Texas) provided EPC on the project, which had an estimated TIV of $150 million. For more information, see Industrial Info's project report.
Long continued: "In addition, construction on another 200 million-cubic-foot-per-day cryogenic processing facility, which will be near our existing Arrowhead plant, is expected to be completed in the fourth quarter of this year." The plant will bring Arrowhead's total processing capacity to 400 million cubic feet per day. ISTI Plant Services is providing EPC. For more information, see Industrial Info's project report.
The company continues expanding its fractionation capacity at its Lone Star facility in Mont Belvieu, Texas. Long said, "We are pleased to announce that Lone Star's 120,000-barrel-per-day (BBL/d) Frac 5 went into service in July, ahead of schedule. This brings our total fractionation capacity at Mont Belvieu to nearly 600,000 BBL/d. ... We continue to expect the 140,000-BBL/d Frac 6 to be in service in the second quarter of 2019. The majority of this [fractionator] is fully contracted under demand-based contracts." Construction on the sixth fractionator began at the start of this year, with S&B Engineers and Constructors Limited (Houston, Texas) providing EPC. For more information, see Industrial Info's project report.
Like other pipeline master limited partnerships, Energy Transfer Partners announced earlier this month that it will be absorbed by its parent company Energy Transfer Equity (NYSE:ETE) in a deal worth $27 billion to simplify corporate structure. Energy Transfer Partners reported net income of $432 million for second-quarter 2018, compared with $202 million in second-quarter 2017.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
In a conference call discussing the company's second-quarter 2018 results, Energy Transfer Chief Financial Officer Tom Long gave an update on some of the company's major projects. The Rover natural gas pipeline is a 713-mile pipeline to transport up to 3.25 billion cubic feet per day (Bcf/d) of natural gas from the Marcellus and Utica shales to various hubs in Michigan, Ohio and Ontario for distribution. The pipeline has faced many hurdles during construction, including the delay of construction due to leaked drilling fluids. Restoration of the area where the pipeline was laid is now one of the aspects hindering parts of the project from beginning service, although the mainline of the project is in service.
In late June, the U.S. Federal Energy Regulatory Commission (FERC) said that a review of future in-service requests "will depend, in part, on a demonstration of Rover's commitment to satisfactory restoration of construction areas and workspaces." Long gave an update on this aspect of the project.
Long said, "Rover is now 100% mechanically complete. For our overall project restoration activities, rough cleanup is 99% complete; final cleanup is 81% complete; and revegetation is 78% complete. We expect to have all these restoration activities 100% complete this month. We submitted in-service requests to FERC for Majorsville [West Virginia] on May 7 and Burgettstown [Pennsylvania] on February 13."
The project had an overall total investment value of $4.2 billion. For more information, see Industrial Info's project reports on the Majorsville and Burgettstown pipeline laterals.
Energy Transfer also constructed a cryogenic natural gas processing plant in Pennsylvania to support Rover. "Our Revolution processing plant is complete, and we expect it go into service once Rover has received full approval of the remaining supply laterals," said Long. Construction on the $250 million plant began in summer 2016, with ISTI Plant Services Incorporated (Tulsa, Oklahoma) providing engineering, procurement and construction (EPC). The facility will have a processing capacity of 440 million cubic feet per day. For more information, see Industrial Info's project report.
Construction on the company's other major pipeline project, the Mariner East 2 (ME2) and ME2X natural gas liquids (NGLs) pipelines also is approaching a major milestone. The pipelines will carry NGLs from the Marcellus and Utica shales to destinations in Pennsylvania, including the company's Marcus Hook industrial complex, where NGLs are stored, processed and distributed. Earlier this year, a judge halted construction of ME2 near West Whiteland Township, Pennsylvania, saying that it was a danger to the public. Long said, "We continue to make progress on the construction of ME2, with 99% of mainline construction complete and 80% of hydrotesting complete. In addition, 100% of HDDs [horizontal directional drilling] are completed or in process, in line with our approved HDD plan. ... The Pennsylvania PUC's [Public Utility Commission] commissioners have overturned the prior decision that prevented continued construction in West Whiteland Township. To avoid any delays in the ME2 project schedule, we will use utilize a section of an existing pipeline ... for initial in-service. This plan does not require any new permits, and we have made all applicable regulatory notification. As a result, we continue to expect to place ME2 in service by the end of this quarter. ... Construction of ME2X also continues, and we expect the pipe to be online in mid-2019." For more information, see Industrial Info's project report on ME2 and ME2X.
Long also spoke of the company's processing plants in Texas. "The 200 million-cubic-foot-per-day Rebel 2 processing plant in the Midland Basin went into service at the end of April. The volumes are ramping up, and we expect it to be full by yearend." Construction on the Rebel 2 processing plant began in summer 2017 and will bring total plant capacity to 330 million cubic feet per day. Optimized Process Designs LLC (Katy, Texas) provided EPC on the project, which had an estimated TIV of $150 million. For more information, see Industrial Info's project report.
Long continued: "In addition, construction on another 200 million-cubic-foot-per-day cryogenic processing facility, which will be near our existing Arrowhead plant, is expected to be completed in the fourth quarter of this year." The plant will bring Arrowhead's total processing capacity to 400 million cubic feet per day. ISTI Plant Services is providing EPC. For more information, see Industrial Info's project report.
The company continues expanding its fractionation capacity at its Lone Star facility in Mont Belvieu, Texas. Long said, "We are pleased to announce that Lone Star's 120,000-barrel-per-day (BBL/d) Frac 5 went into service in July, ahead of schedule. This brings our total fractionation capacity at Mont Belvieu to nearly 600,000 BBL/d. ... We continue to expect the 140,000-BBL/d Frac 6 to be in service in the second quarter of 2019. The majority of this [fractionator] is fully contracted under demand-based contracts." Construction on the sixth fractionator began at the start of this year, with S&B Engineers and Constructors Limited (Houston, Texas) providing EPC. For more information, see Industrial Info's project report.
Like other pipeline master limited partnerships, Energy Transfer Partners announced earlier this month that it will be absorbed by its parent company Energy Transfer Equity (NYSE:ETE) in a deal worth $27 billion to simplify corporate structure. Energy Transfer Partners reported net income of $432 million for second-quarter 2018, compared with $202 million in second-quarter 2017.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
