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Released May 10, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Energy Transfer (NYSE:ET) (Dallas, Texas) recently reported first-quarter 2019 earnings results, posting record net income of $870 million, compared with $363 million in first-quarter 2018. The company is plowing its funds back into capital investments across its diverse midstream portfolio and expects to spend approximately $5 billion for organic growth projects in 2019.
In the company's earnings conference call, Chief Financial Officer Tom Long gave an update on the company's projects, including its largest undertaking, the Lakes Charles liquefied natural gas (LNG) project in Louisiana. Long said, "In March, we announced that we had signed a project framework with Shell (NYSE:RDS-A) (The Hague, Netherlands) that provides the foundation to further develop the Lake Charles LNG export facility for a potential final investment decision, or FID. In addition, the parties have been actively engaged with LNG engineering, procurement and contracting, or EPC, companies over the last several months, and last week Lake Charles issued an invitation to tender to U.S. and international consortia to bid for the EPC contract." The facility will be constructed at Energy Transfer's existing LNG regasification terminal, and if completed in full, would have a production capacity of 16.45 million tons per year. For more information, see Industrial Info's project reports on Train 1, Train 2 and Train 3.
As production of natural gas liquids (NGLs) in the U.S. remains strong, Energy Transfer also plans to construct a joint-venture ethane and ethylene export terminal on the Texas Gulf Coast with Satellite Petrochemical USA Corporation (Houston, Texas). Long said, "We continue to expect the export terminal to be ready for commercial service in the fourth quarter of 2020." The terminal, which has an estimated total investment value (TIV) of $600 million, is expected to have an export capability of 98,000 barrels per day (BBL/d) of ethane and 100,000 BBL/d of ethylene. For more information, see Industrial Info's project report.
The company is also involved in NGL fractionation, including at its Lone Star facility in Mont Belvieu, Texas, where Energy Transfer is expanding its capacity. Long said, "Looking at our Lone Star assets, the 150,000-BBL/d Frac 6 went into service in mid-February and has been full since March. On Frac 7, we continue to expect it to be in service in the first quarter of 2020, and we expect it to ramp up very quickly." Construction on Frac 7 began late last year, with S&B Engineers and Constructors Limited (Houston) providing EPC. The 150,000-BBL/d fractionator will bring the facility's total fractionation capacity to 900,000 BBL/d. For more information, see Industrial Info's project report.
Turning to pipelines, Long said, "Our 24-inch, 352-mile Lone Star Express expansion will add over 400,000 BBL/d of NGL capacity from the Permian Basin to the Lone Star Express 30-inch pipeline south of Fort Worth, Texas. It is still expected to be in service in the fourth quarter of 2020." For more information, see Industrial Info's project report.
Long said, "Turning to our [natural gas] processing plants in West Texas, the 200 million-cubic-foot-per-day Arrowhead 2 cryogenic processing facility went into service at the end of October and is running full today. During the fourth quarter, we approved Arrowhead 3, another 200 million-cubic-foot-per-day processing plant in the Delaware Basin. Arrowhead 3 is expected to be in service in the third quarter of 2019 and is projected to be full by yearend, bringing our total processing capacity in the Permian Basin to approximately 2.5 Bcf [billion cubic feet] per day." Construction on Arrowhead 3 began in fourth-quarter 2018, with ISTI Plant Services Incorporated (Tulsa, Oklahoma) providing EPC. The project has an estimated TIV of $150 million. For more information, see Industrial Info's project report.
Energy Transfer does not appear to be done with its natural gas processing buildout. Long said, "To meet growing producer demand, we continue to expect to announce another processing plant in the Permian Basin shortly. We anticipate this plant being in service in 2020, and [it] is already fully subscribed." The plant could be constructed at Energy Transfer's Panther cryogenic processing facility near Midkiff, Texas, where the company is constructing a second processing train to bring total plant capacity to 400 million cubic feet per day. Construction on Train 2 began recently and is expected to be completed in fourth-quarter 2019. For more information, see Industrial Info's project report.
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 the company's earnings conference call, Chief Financial Officer Tom Long gave an update on the company's projects, including its largest undertaking, the Lakes Charles liquefied natural gas (LNG) project in Louisiana. Long said, "In March, we announced that we had signed a project framework with Shell (NYSE:RDS-A) (The Hague, Netherlands) that provides the foundation to further develop the Lake Charles LNG export facility for a potential final investment decision, or FID. In addition, the parties have been actively engaged with LNG engineering, procurement and contracting, or EPC, companies over the last several months, and last week Lake Charles issued an invitation to tender to U.S. and international consortia to bid for the EPC contract." The facility will be constructed at Energy Transfer's existing LNG regasification terminal, and if completed in full, would have a production capacity of 16.45 million tons per year. For more information, see Industrial Info's project reports on Train 1, Train 2 and Train 3.
As production of natural gas liquids (NGLs) in the U.S. remains strong, Energy Transfer also plans to construct a joint-venture ethane and ethylene export terminal on the Texas Gulf Coast with Satellite Petrochemical USA Corporation (Houston, Texas). Long said, "We continue to expect the export terminal to be ready for commercial service in the fourth quarter of 2020." The terminal, which has an estimated total investment value (TIV) of $600 million, is expected to have an export capability of 98,000 barrels per day (BBL/d) of ethane and 100,000 BBL/d of ethylene. For more information, see Industrial Info's project report.
The company is also involved in NGL fractionation, including at its Lone Star facility in Mont Belvieu, Texas, where Energy Transfer is expanding its capacity. Long said, "Looking at our Lone Star assets, the 150,000-BBL/d Frac 6 went into service in mid-February and has been full since March. On Frac 7, we continue to expect it to be in service in the first quarter of 2020, and we expect it to ramp up very quickly." Construction on Frac 7 began late last year, with S&B Engineers and Constructors Limited (Houston) providing EPC. The 150,000-BBL/d fractionator will bring the facility's total fractionation capacity to 900,000 BBL/d. For more information, see Industrial Info's project report.
Turning to pipelines, Long said, "Our 24-inch, 352-mile Lone Star Express expansion will add over 400,000 BBL/d of NGL capacity from the Permian Basin to the Lone Star Express 30-inch pipeline south of Fort Worth, Texas. It is still expected to be in service in the fourth quarter of 2020." For more information, see Industrial Info's project report.
Long said, "Turning to our [natural gas] processing plants in West Texas, the 200 million-cubic-foot-per-day Arrowhead 2 cryogenic processing facility went into service at the end of October and is running full today. During the fourth quarter, we approved Arrowhead 3, another 200 million-cubic-foot-per-day processing plant in the Delaware Basin. Arrowhead 3 is expected to be in service in the third quarter of 2019 and is projected to be full by yearend, bringing our total processing capacity in the Permian Basin to approximately 2.5 Bcf [billion cubic feet] per day." Construction on Arrowhead 3 began in fourth-quarter 2018, with ISTI Plant Services Incorporated (Tulsa, Oklahoma) providing EPC. The project has an estimated TIV of $150 million. For more information, see Industrial Info's project report.
Energy Transfer does not appear to be done with its natural gas processing buildout. Long said, "To meet growing producer demand, we continue to expect to announce another processing plant in the Permian Basin shortly. We anticipate this plant being in service in 2020, and [it] is already fully subscribed." The plant could be constructed at Energy Transfer's Panther cryogenic processing facility near Midkiff, Texas, where the company is constructing a second processing train to bring total plant capacity to 400 million cubic feet per day. Construction on Train 2 began recently and is expected to be completed in fourth-quarter 2019. For more information, see Industrial Info's project report.
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.
