Energy Transfer Reports Successful Third Quarter, Rover Pipeline to Be in Service by First-Quarter 2018

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Energy Transfer Partners (NYSE:ETP) (Dallas, Texas) reported a successful third-quarter 2017, with net income rising to $761 million in the quarter, from $138 million in third-quarter 2016. The company is making headway with several major projects, including its $4.2 billion Rover natural gas pipeline in the eastern U.S. and a natural gas processing plant in West Texas. Industrial Info is tracking $15.3 billion in active Energy Transfer Partners projects.

In a conference call, Chief Financial Officer Tom Long spoke about the Rover Pipeline, a 713-mile project designed to transport 3.25 billion cubic feet per day (Bcf/d) of natural gas from the Marcellus and Utica shales to markets in the U.S. and Canada. "Phase 1A was placed into service on August 31, 2017, and on October 9, we received approval from FERC [Federal Energy Regulatory Commission] to begin operating three compressor units at our mainline Compressor Station 1 in Carroll County, Ohio. We are pleased to say that Phase 1A of Rover is now transporting more than 1 Bcf/d of natural gas from Cadiz, Ohio, to Defiance, Ohio, the majority of which are at full tariff rate." For more information, see Industrial Info's project report on Phase 1A of the Rover project.

Long also spoke of additional phases. Phase 1B will start in Marion Township, Ohio, running to Cadiz. "For Phase 1B, drilling operations for our remaining HDD [horizontal directional drilling] are nearly complete. We expect this phase will be in service and we will be collecting demand fees from all of Phase 1 before the end of this year. In addition, Phase 2 continues, and we feel confident the entire pipeline will be in service by the end of the first quarter of 2018." Phase 2 will run from Defiance, Ohio, to Livingston County, Michigan. For more information, see Industrial Info's project reports on the Michigan, Ohio and West Virginia portions of the project and September 20, 2017, article - Rover Natural Gas Pipeline Bounds Ahead with FERC Drilling Approval.

Ohio is suing Energy Transfer over drilling fluid spilled during construction of the Rover pipeline. The lawsuit was announced earlier this week and stems from spills earlier this year that temporarily halted Energy Transfer's construction in the state. FERC allowed construction to resume in Ohio in September.

Energy Transfer's Mariner East natural gas liquids (NGL) pipeline was inherited when the company completed its acquisition of Sunoco Logistics Partners in April this year. The pipeline transports NGL from the Marcellus and Utica shales into western Pennsylvania. The first phase of the project went into operation in early 2016. Long discussed the second phase of the project, Mariner East 2, which is under construction and will expand total capacity to 345,000 barrels per day (BBL/d) of propane, ethane and butane across Pennsylvania, West Virginia and Ohio. "Moving on the Mariner East 2, we continue to make progress on the construction of this project. Mainline construction of this pipeline will be 99% in the ground and buried by the end of the year." Long said that because of some environmental delays, the pipeline was expected to be in service in the second quarter of 2018.

Long also discussed the company's developments in West Texas. "The 200 million [cubic-foot-per-day] Rebel 2 processing plant in the Midland Basin will go into service in the second quarter of 2018," said Long. Construction on the project in Garden City, Texas, kicked off this summer. Optimized Process Design LLC (Katy, Texas) is providing engineering, procurement and construction (EPC) on the project, which will increase the total processing capacity of the Rebel plant to 330 million standard cubic feet per day. For more information, see Industrial Info's project report.

Long spoke of the company's Bayou Bridge crude oil pipeline in Texas and Louisiana: "On Bayou Bridge, on the 30-inch segment from Nederland [Texas] to Lake Charles [Louisiana], we transported an average of 147,000 BBL/d in the third quarter. On the 24-inch segment of Bayou bridge from Lake Charles to St. James [Louisiana], construction is expected to commence this quarter, and we now expect commercial operation to begin in the second half of 2018." The pipeline is expected to transport 280,000 BBL/d when fully operational. For more information, see Industrial Info's project report on Phase 2 of the Bayou Bridge project.

Long also announced that company would have a sixth NGL fractionator at the company's complex in Mont Belvieu, Texas, in service in the second quarter of 2019. The 100,000-BBL/d fractionator would bring the total fractionator complex capacity to 700,000 BBL/d. Construction is planned to kick off in the first quarter of next year. The project has an estimated total investment value of $350 million. 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.