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Released February 17, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Midstream company Energy Transfer LP (NYSE:ET) (Dallas, Texas) reported solid results both operationally and financially for the recently passed fourth quarter of 2022. During the quarter, the company achieved record volumes for both the fractionation and transport of natural gas liquids (NGLs) and retained its position as the world's largest NGL exporter.
In this week's earnings-related conference call with analysts, Energy Transfer Co-Chief Executive Officer Tom Long discussed the company's achievements in the fourth quarter as well as movement being seen on its ongoing projects. "Operationally, we moved record volumes across all of our segments for the year ended 2022, which included record volumes on our legacy midstream intrastate and NGL transport systems, as well as through our fractionators at Mont Belvieu, [Texas]," said Long.
Long said that Energy Transfer's NGL transportation volumes on the company's wholly owned and joint-venture pipelines increased to a record 2 million barrels per day (BBL/d) in the just-passed quarter, compared with 1.9 million BBL/d a year earlier. "This increase was primarily due to higher volumes from the Permian and Eagle Ford regions, as well as on our NGL pipelines that deliver into our Nederland [Texas] Terminal," said Long. Crude oil transport volumes also were high, coming in at 4.3 million BBL/d in the quarter, compared with 3.8 million BBL/d from the same period of the prior year.
The company easily maintained its status as the world's largest exporter of NGLs from its terminals in Nederland and Marcus Hook, Pennsylvania, with fourth-quarter 2022 and full-year exports significantly exceeding exports for both fourth-quarter and full-year 2021. "In 2022, we loaded nearly 43 million barrels of ethane out of Nederland," said Long. "And for full-year 2023, we expect to load more than 60 million barrels. In total, we continue to export more NGLs than any other company or country, with our percentage of worldwide NGL exports remaining at approximately 20% of the world market."
In November, Energy Transfer completed a dredging project at its Marcus Hook site to increase depth at one of the docks to 42 feet, allowing the company to fully load very large ethane carriers (VLECs).
NGL fractionation volumes also were strong at the company's complex in Mont Belvieu. Long said fractionated volumes were a record 962,000 BBL/d, compared with 895,000 in the prior year. "In fact," said Long, "during the fourth quarter of 2022, single-day fractionation throughput at Mont Belvieu reached more than 1 million barrels for the first time in our partnership's history."
Energy Transfer's fractionation volumes will grow further with the addition of an eighth fractionation train at Mont Belvieu. The 150,000-BBL/d fractionator will bring the site's total capacity to approximately 1.15 million BBL/d. Construction on the fractionator kicked off in 2019, with S&B Engineers and Constructors Limited providing engineering, procurement and construction services. The unit is expected to go into service in the third quarter of this year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Project Database can click here for more details.
In regard to natural gas gathering and processing, fourth-quarter 2022-gathered gas volumes were a record 19.4 million British thermal units (MMBtu) per day, compared with 14.8 MMBtu/d in fourth-quarter 2021. In December, the company placed its 200 million-cubic-foot-per-day Gray Wolf gas processing plant into service in the Permian Basin, which is in the process of ramping up.
Also in the Permian, late last year the company kicked off construction of its Bear cryogenic processing plant, which will process around 200 million cubic feet per day. Long said the plant remains on schedule to be in service in the second quarter of this year. Subscribers can click here for the full report. Long said that Energy Transfer "continue[s] to evaluate the necessity and potential timing of adding another processing plant in the region."
Other accomplishments in the recently passed quarter include the completion of the Gulf Run Pipeline, which will carry natural gas from Energy Transfer's upstream pipeline network and the Haynesville Shale for delivery to the Gulf Coast, including U.S. liquefied natural gas (LNG) export markets. The pipeline is backed by a 20-year commitment for 1.1 billion cubic feet per day from Golden Pass LNG (Houston, Texas), the joint venture LNG project of Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) and QatarEnergy (Doha, Qatar). All three trains of the plant are under construction and are expected to be completed in 2024 and 2025. Subscribers can click here for related project reports.
Long also touched on Energy Transfer's plans for its own LNG production plant in Lake Charles, Louisiana, although not providing many details. "The LNG market along the Gulf Coast is currently extremely competitive," said Long. "Given this level of competition, it is taking us longer to reach FID [final investment decision] than originally expected, but we are optimistic that we will bring this project to FID. We continue making progress on all aspects of the project and are working hard to sign up more customers, and we'll share additional information as it becomes available." Plans for the plant call for up to three LNG production trains, each with a capacity of 5 million tons per year. Subscribers can click here for related reports.
Energy Transfer reported fourth-quarter 2022 net income of $1.16 billion, an increase of $234 million from fourth-quarter 2021.
Subscribers to Industrial Info's GMI Database can click here for a look at reports for all active projects discussed in this article, and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
In this week's earnings-related conference call with analysts, Energy Transfer Co-Chief Executive Officer Tom Long discussed the company's achievements in the fourth quarter as well as movement being seen on its ongoing projects. "Operationally, we moved record volumes across all of our segments for the year ended 2022, which included record volumes on our legacy midstream intrastate and NGL transport systems, as well as through our fractionators at Mont Belvieu, [Texas]," said Long.
Long said that Energy Transfer's NGL transportation volumes on the company's wholly owned and joint-venture pipelines increased to a record 2 million barrels per day (BBL/d) in the just-passed quarter, compared with 1.9 million BBL/d a year earlier. "This increase was primarily due to higher volumes from the Permian and Eagle Ford regions, as well as on our NGL pipelines that deliver into our Nederland [Texas] Terminal," said Long. Crude oil transport volumes also were high, coming in at 4.3 million BBL/d in the quarter, compared with 3.8 million BBL/d from the same period of the prior year.
The company easily maintained its status as the world's largest exporter of NGLs from its terminals in Nederland and Marcus Hook, Pennsylvania, with fourth-quarter 2022 and full-year exports significantly exceeding exports for both fourth-quarter and full-year 2021. "In 2022, we loaded nearly 43 million barrels of ethane out of Nederland," said Long. "And for full-year 2023, we expect to load more than 60 million barrels. In total, we continue to export more NGLs than any other company or country, with our percentage of worldwide NGL exports remaining at approximately 20% of the world market."
In November, Energy Transfer completed a dredging project at its Marcus Hook site to increase depth at one of the docks to 42 feet, allowing the company to fully load very large ethane carriers (VLECs).
NGL fractionation volumes also were strong at the company's complex in Mont Belvieu. Long said fractionated volumes were a record 962,000 BBL/d, compared with 895,000 in the prior year. "In fact," said Long, "during the fourth quarter of 2022, single-day fractionation throughput at Mont Belvieu reached more than 1 million barrels for the first time in our partnership's history."
Energy Transfer's fractionation volumes will grow further with the addition of an eighth fractionation train at Mont Belvieu. The 150,000-BBL/d fractionator will bring the site's total capacity to approximately 1.15 million BBL/d. Construction on the fractionator kicked off in 2019, with S&B Engineers and Constructors Limited providing engineering, procurement and construction services. The unit is expected to go into service in the third quarter of this year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Project Database can click here for more details.
In regard to natural gas gathering and processing, fourth-quarter 2022-gathered gas volumes were a record 19.4 million British thermal units (MMBtu) per day, compared with 14.8 MMBtu/d in fourth-quarter 2021. In December, the company placed its 200 million-cubic-foot-per-day Gray Wolf gas processing plant into service in the Permian Basin, which is in the process of ramping up.
Also in the Permian, late last year the company kicked off construction of its Bear cryogenic processing plant, which will process around 200 million cubic feet per day. Long said the plant remains on schedule to be in service in the second quarter of this year. Subscribers can click here for the full report. Long said that Energy Transfer "continue[s] to evaluate the necessity and potential timing of adding another processing plant in the region."
Other accomplishments in the recently passed quarter include the completion of the Gulf Run Pipeline, which will carry natural gas from Energy Transfer's upstream pipeline network and the Haynesville Shale for delivery to the Gulf Coast, including U.S. liquefied natural gas (LNG) export markets. The pipeline is backed by a 20-year commitment for 1.1 billion cubic feet per day from Golden Pass LNG (Houston, Texas), the joint venture LNG project of Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) and QatarEnergy (Doha, Qatar). All three trains of the plant are under construction and are expected to be completed in 2024 and 2025. Subscribers can click here for related project reports.
Long also touched on Energy Transfer's plans for its own LNG production plant in Lake Charles, Louisiana, although not providing many details. "The LNG market along the Gulf Coast is currently extremely competitive," said Long. "Given this level of competition, it is taking us longer to reach FID [final investment decision] than originally expected, but we are optimistic that we will bring this project to FID. We continue making progress on all aspects of the project and are working hard to sign up more customers, and we'll share additional information as it becomes available." Plans for the plant call for up to three LNG production trains, each with a capacity of 5 million tons per year. Subscribers can click here for related reports.
Energy Transfer reported fourth-quarter 2022 net income of $1.16 billion, an increase of $234 million from fourth-quarter 2021.
Subscribers to Industrial Info's GMI Database can click here for a look at reports for all active projects discussed in this article, and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
