Dynegy Planning to Expand Natural Gas Liquids Production in Louisiana

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Dynegy Incorporated (NYSE:DYN) (Houston Texas) through its subsidiary Dynegy Midstream Services LP has a new NGL plant expansion on the drawing board. Dynegy Midstream Services is looking into the feasibility of expanding its existing Venice Gas Processing Plant by constructing a new cryogenic plant capable of processing a 500 mmscfd gas stream and remove the liquids.

To accomplish this, Dynegy would have to relocate a package boiler from a facility in Kansas, install up to 20,000 horsepower of new compression and three new waste heat boilers in addition to the cryogenic unit itself. Dynegy is presently conducting an early study to determine the scope of the project and the capital expenditure could be between $40 and $50 million dollars. If the project makes the financial grade then construction is not expected to begin before 2005.

Dynegy Midstream Services LP is one of North America's largest marketers of NGL and is engaged in the gathering, processing, fractionation, storing and transportation of natural gas and NGL. Dynegy Midstream owns twenty-two processing facilities, three fractionators and fourteen storage & terminal facilities. Dynegy Incorporated has rebounded and reported on April 29, 2003 a first quarter earnings of $0.17 per diluted share on a net income of $147 million, a far cry from the first quarter of 2002 when Dynegy reported a net loss of $247 million or -$0.91 per share.

IIR has been tracking the progress of the Venice Expansion since March of 2002.