Reports related to this article:
Project(s): View 4 related projects in PECWeb
Plant(s): View 3 related plants in PECWeb
Released November 15, 2016 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Last week, Energy Transfer Partners LP (NYSE:ETP) (Dallas, Texas) reported the company's progress on its largest growth projects, including the controversial Dakota Access crude oil pipeline. The company says it expects to spend about $2.8 billion for organic growth projects in 2016. Industrial Info is tracking more than $19.6 billion in projects involving Energy Transfer Partners.
Thomas Long, chief financial officer of Energy Transfer Partners, said in conference call regarding the company's third-quarter performance that the Dakota Access Pipeline is now about 84% complete. The company is waiting for a final authorization from the U.S. Army Corps of Engineers for an easement to allow the pipeline to cross beneath Lake Oahe in North Dakota, which is according to Long, "the sole remaining authorization necessary for the completion of the project."
The Army Corps of Engineers on Monday said it has finished a review of the pipeline but wants more study and input by the Standing Rock Sioux Tribe before deciding whether to allow it to cross beneath the reservoir, according to The Associated Press. "We remain confident that we will receive the easement from the Army Corps in a time frame that will not result in significant delays in proceeding with drilling activities under Lake Oahe. As a result, we continue to expect that commercial operations will commence in the first quarter of 2017," said Long. Protests continue at the site, with several protests planned Tuesday at U.S. Army Corps of Engineers and government offices throughout the U.S.
Long discussed other projects, including the Bayou Bridge crude oil pipeline in Texas and Louisiana. The 30-inch-wide segment from Nederland, Texas, to Lake Charles, Louisiana, began commercial operations in April, with volumes averaging 69,000 barrels per day (BBL/d) in the third quarter of this year. "The 24-inch segment of Bayou Bridge from Lake Charles to St. James continues to move forward, with permitting going in as expected and right-of-way acquisition ahead of schedule," said Long. "We anticipate that deliveries to St. James will commence in the second half of 2017."
The company is also progressing on its Lone Star natural gas liquids (NGL) projects. A fourth fractionator was completed in October, adding 120,000 BBL/d of processing capacity to the company's Lone Star fractionation complex in Mont Belvieu, Texas. "We anticipate operating at our total fractionation nameplate capacity at Mont Belvieu of 427,000 BBL/d by the middle of 2017," said Long. The company could potentially add two more fractionators to the complex, although construction of these wouldn't commence until mid-2017 and 2018.
Long also gave indication of future growth projects. "Due to continued strong demand, we will be building a new 200 million-cubic-foot-per-day processing plant in the Delaware Basin. However, we are evaluating the best location for the facility. The Permian Basin continues to be the best multiple pay resource play in the country and will continue to drive future growth for ETP," said Long.
Energy Transfer Partners reported third-quarter 2016 net income of $138 million, a decrease of $255 million from the same period of last year, primarily due to a $308 million non-cash impairment of the Partnership's investment in the Midcontinent Express Pipeline.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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.
Thomas Long, chief financial officer of Energy Transfer Partners, said in conference call regarding the company's third-quarter performance that the Dakota Access Pipeline is now about 84% complete. The company is waiting for a final authorization from the U.S. Army Corps of Engineers for an easement to allow the pipeline to cross beneath Lake Oahe in North Dakota, which is according to Long, "the sole remaining authorization necessary for the completion of the project."
The Army Corps of Engineers on Monday said it has finished a review of the pipeline but wants more study and input by the Standing Rock Sioux Tribe before deciding whether to allow it to cross beneath the reservoir, according to The Associated Press. "We remain confident that we will receive the easement from the Army Corps in a time frame that will not result in significant delays in proceeding with drilling activities under Lake Oahe. As a result, we continue to expect that commercial operations will commence in the first quarter of 2017," said Long. Protests continue at the site, with several protests planned Tuesday at U.S. Army Corps of Engineers and government offices throughout the U.S.
Long discussed other projects, including the Bayou Bridge crude oil pipeline in Texas and Louisiana. The 30-inch-wide segment from Nederland, Texas, to Lake Charles, Louisiana, began commercial operations in April, with volumes averaging 69,000 barrels per day (BBL/d) in the third quarter of this year. "The 24-inch segment of Bayou Bridge from Lake Charles to St. James continues to move forward, with permitting going in as expected and right-of-way acquisition ahead of schedule," said Long. "We anticipate that deliveries to St. James will commence in the second half of 2017."
The company is also progressing on its Lone Star natural gas liquids (NGL) projects. A fourth fractionator was completed in October, adding 120,000 BBL/d of processing capacity to the company's Lone Star fractionation complex in Mont Belvieu, Texas. "We anticipate operating at our total fractionation nameplate capacity at Mont Belvieu of 427,000 BBL/d by the middle of 2017," said Long. The company could potentially add two more fractionators to the complex, although construction of these wouldn't commence until mid-2017 and 2018.
Long also gave indication of future growth projects. "Due to continued strong demand, we will be building a new 200 million-cubic-foot-per-day processing plant in the Delaware Basin. However, we are evaluating the best location for the facility. The Permian Basin continues to be the best multiple pay resource play in the country and will continue to drive future growth for ETP," said Long.
Energy Transfer Partners reported third-quarter 2016 net income of $138 million, a decrease of $255 million from the same period of last year, primarily due to a $308 million non-cash impairment of the Partnership's investment in the Midcontinent Express Pipeline.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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.
