Reports related to this article:
Project(s): View 8 related projects in PECWeb
Plant(s): View 5 related plants in PECWeb
Released November 09, 2018 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Energy Transfer LP (NYSE:ET) (Dallas, Texas) reported strong third-quarter 2018 earnings, as the company announced plans for a new fractionator and continues with a hefty capital growth plan, adding future pipeline and gas processing capacity. The company reported third-quarter net income of $371 million, up from $252 million in the prior-year quarter. Industrial Info is tracking $14.5 billion in Energy Transfer projects.
Click on the image at right for a breakdown of industry of active Energy Transfer projects.
In the company's quarterly conference call, Energy Transfer Chief Financial Officer Tom Long discussed the company's growth projects and the plans for a new fractionator (frac) at its Lone Star facility in Mont Belvieu, Texas. Long said, "Similar to Frac 6, which is currently under construction, Frac 7 will also have a capacity of 150,000 barrels per day (BBL/d) and is fully subscribed under long-term, demand-based agreements. Frac 6 is now expected to be in service in the first quarter of 2019, ahead of schedule, and Frac 7 is expected to be in service in the first quarter of 2020. These fracs will require much-needed capacity to fulfill incremental demand from our customers, since Frac 5, which went into service in July of this year, is already running at full capacity."
Construction on Fractionator 6 began early this year, with S&B Engineers and Constructors Limited (Houston, Texas) providing engineering, procurement and construction (EPC). Fractionators 6 and 7 each have an estimated total investment value of $350 million. Long said the two fractionators would increase Energy Transfer's total fractionating capacity at Mont Belvieu to more than 900,000 BBL/d. For more information, see Industrial Info's project reports on Fractionator 6 and Fractionator 7. Long said, "We will continue to look at adding more fracs in the future as demand continues to grow."
The company has also recently made some significant milestones on projects. Speaking of Energy Transfer's Rover natural gas pipeline, Long said, "One hundred percent of Rover's 3.25-Bcf-[billion cubic feet]-per-day mainline capacity has been in service since June 1, and we are currently flowing over 3 Bcf on the pipeline. ... On November 1, we received approval from FERC [Federal Energy Regulatory Commission] to commence service on the Sherwood and CGT laterals, the final laterals needed to complete the project. These laterals are now in service and allow us to add an additional receipt point and delivery point for natural gas production in West Virginia." For more information, see Industrial Info's project reports on the Sherwood and CGT laterals.
Long also spoke of a recently announced project. "The 30-inch Permian-Gulf Coast Pipeline, which we announced during the quarter, will be a joint venture project between Magellan [Midstream Partners] (NYSE:MMP) (Tulsa, Oklahoma), MPLX (NYSE:MPLX) (Findlay, Ohio) and Delek [US Holdings] (NYSE:DK) (Brentwood, Tennessee). This 600-mile pipeline will provide unprecedented flexibility from the Permian Basin for deliveries to both Energy Transfer's Nederland [Texas] terminal ... as well as Magellan's East Houston Terminal and ultimate delivery through our respective distribution systems." The project recently finished a successful open season, and a supplemental open season will occur. The pipeline will carry approximately 600,000 BBL/d of crude oil. Construction is expected to begin next year and be completed in mid-2020. For more information, see Industrial Info's project report.
Long said, "As for Bayou Bridge [crude oil pipeline], we are nearing completion of construction on the 24-inch segment from Lake Charles to Saint James [in Louisiana] and expect commercial operations to begin by yearend." Construction on the second phase of Bayou Bridge, which originates in Nederland, Texas, began earlier this year. The pipeline will carry 280,000 BBL/d and is expandable up to 480,000 BBL/d. For more information, see Industrial Info's project report.
Long also spoke of the company's natural gas processing plants. "The 200 million-cubic-foot-per-day Arrowhead 2 cryo[genic] plant went into service at the end of October, and we expect it to be full by the end of first-quarter 2019. We have recently approved construction of another 200 million-cubic-foot-per-day processing plant in the Delaware Basin, and we expect to add one or two new plants per year in the Midland or Delaware Basin over the next few years, as demand remains strong."
Construction on the second train at the Arrowhead processing plant in Pecos, Texas, began late last year, with ISTI Plant Services Incorporated (Tulsa, Oklahoma) providing EPC. Construction of a third train is expected to begin soon, with completion next summer. The third train would bring total plant processing capacity to 600 million cubic feet per day. For more information, see Industrial Info's project reports on Train 2 and Train 3.
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.
Click on the image at right for a breakdown of industry of active Energy Transfer projects.In the company's quarterly conference call, Energy Transfer Chief Financial Officer Tom Long discussed the company's growth projects and the plans for a new fractionator (frac) at its Lone Star facility in Mont Belvieu, Texas. Long said, "Similar to Frac 6, which is currently under construction, Frac 7 will also have a capacity of 150,000 barrels per day (BBL/d) and is fully subscribed under long-term, demand-based agreements. Frac 6 is now expected to be in service in the first quarter of 2019, ahead of schedule, and Frac 7 is expected to be in service in the first quarter of 2020. These fracs will require much-needed capacity to fulfill incremental demand from our customers, since Frac 5, which went into service in July of this year, is already running at full capacity."
Construction on Fractionator 6 began early this year, with S&B Engineers and Constructors Limited (Houston, Texas) providing engineering, procurement and construction (EPC). Fractionators 6 and 7 each have an estimated total investment value of $350 million. Long said the two fractionators would increase Energy Transfer's total fractionating capacity at Mont Belvieu to more than 900,000 BBL/d. For more information, see Industrial Info's project reports on Fractionator 6 and Fractionator 7. Long said, "We will continue to look at adding more fracs in the future as demand continues to grow."
The company has also recently made some significant milestones on projects. Speaking of Energy Transfer's Rover natural gas pipeline, Long said, "One hundred percent of Rover's 3.25-Bcf-[billion cubic feet]-per-day mainline capacity has been in service since June 1, and we are currently flowing over 3 Bcf on the pipeline. ... On November 1, we received approval from FERC [Federal Energy Regulatory Commission] to commence service on the Sherwood and CGT laterals, the final laterals needed to complete the project. These laterals are now in service and allow us to add an additional receipt point and delivery point for natural gas production in West Virginia." For more information, see Industrial Info's project reports on the Sherwood and CGT laterals.
Long also spoke of a recently announced project. "The 30-inch Permian-Gulf Coast Pipeline, which we announced during the quarter, will be a joint venture project between Magellan [Midstream Partners] (NYSE:MMP) (Tulsa, Oklahoma), MPLX (NYSE:MPLX) (Findlay, Ohio) and Delek [US Holdings] (NYSE:DK) (Brentwood, Tennessee). This 600-mile pipeline will provide unprecedented flexibility from the Permian Basin for deliveries to both Energy Transfer's Nederland [Texas] terminal ... as well as Magellan's East Houston Terminal and ultimate delivery through our respective distribution systems." The project recently finished a successful open season, and a supplemental open season will occur. The pipeline will carry approximately 600,000 BBL/d of crude oil. Construction is expected to begin next year and be completed in mid-2020. For more information, see Industrial Info's project report.
Long said, "As for Bayou Bridge [crude oil pipeline], we are nearing completion of construction on the 24-inch segment from Lake Charles to Saint James [in Louisiana] and expect commercial operations to begin by yearend." Construction on the second phase of Bayou Bridge, which originates in Nederland, Texas, began earlier this year. The pipeline will carry 280,000 BBL/d and is expandable up to 480,000 BBL/d. For more information, see Industrial Info's project report.
Long also spoke of the company's natural gas processing plants. "The 200 million-cubic-foot-per-day Arrowhead 2 cryo[genic] plant went into service at the end of October, and we expect it to be full by the end of first-quarter 2019. We have recently approved construction of another 200 million-cubic-foot-per-day processing plant in the Delaware Basin, and we expect to add one or two new plants per year in the Midland or Delaware Basin over the next few years, as demand remains strong."
Construction on the second train at the Arrowhead processing plant in Pecos, Texas, began late last year, with ISTI Plant Services Incorporated (Tulsa, Oklahoma) providing EPC. Construction of a third train is expected to begin soon, with completion next summer. The third train would bring total plant processing capacity to 600 million cubic feet per day. For more information, see Industrial Info's project reports on Train 2 and Train 3.
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.
