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Released February 19, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Like other midstream companies, Energy Transfer LP (NYSE:ET) (Dallas, Texas) had an uphill struggle in 2020 as the coronavirus caused declines in both upstream production and downstream demand. However, if there was a bright side, it was this: Energy Transfer showed record fractionation volumes during the year.
In the company's earnings conference call, Chief Executive Officer Tom Long gave updates on Energy Transfer's status and on the recent winter weather Texas and the U.S.
"Just to briefly touch upon the unprecedented winter weather conditions we're currently seeing across the country--just like the majority of our peers, we're experiencing impacts to our operations related to the extremely cold temperatures," Long said. "But we believe our operations team is second to none. And their efforts over the last few days have been remarkable. They are in constant communication with our commercial teams, and are trying to do what is best for our customers, particularly those serving human needs, customers and electric generation facilities. The situation is changing constantly. And our team is addressing these challenges on an hour-by-hour basis as best as possible."
Long went on to discuss the company's accomplishments in 2020: "Operationally, we moved a record number of NGLs [natural gas liquids] through our pipelines portfolio in 2020, primarily driven by our Mariner East and Texas NGL pipeline systems. And our fractionation volumes also reached a new high during 2020 due to additional ramp up of volumes on Frac 7, which went into service in February of 2020." Construction of Frac 7 at Energy Transfer's Lone Star complex in Mont Belvieu, Texas, began in late 2018, with S&B Engineers and Constructors Limited (Houston, Texas) providing engineering, procurement and construction (EPC) services. The fractionator increased the complex's fractionation capacity by 150,000 barrels per day (BBL/d), boosting it to a total of 900,000 BBL/d. For more information, see Industrial Info's project report.
The company is in the middle of constructing an eighth fractionator, adding another 150,000 BBL/d of capacity; however, the completion date for this project has been moved back to next year because of market conditions brought about the COVID-19 pandemic. For more information, see Industrial Info's project report.
Other projects completed in 2020 include an expansion of the liquefied petroleum gas (LPG) terminal and ethane export terminal in Nederland, Texas, from which Energy Transfer loaded its first very large ethane carrier with a 911,000-barrel cargo in January. For more information, see Industrial Info's project reports on the LPG terminal and ethane export terminal.
For 2021, the company expects about to spend about $1.45 billion for growth capital, down from approximately $3.05 billion in 2020. This year's growth capital spending includes about $250 million that was deferred from last year.
Active Energy Transfer projects that are underway include the Revolution cryogenic gas processing plant in Bulger, Pennsylvania. The facility will have a processing capacity of 440 million cubic feet per day of natural gas, producing natural gas liquids and fractionated ethane from the Marcellus and Upper Devonian areas. Construction on the project began in 2016, but commissioning was delayed due to pipeline issues. The project is now on track to be completed in the coming months. For more information, see Industrial Info's project report.
Other active projects include the Arrowhead Train 4 gas processing addition at the company's facility in Coyanosa, Texas. The unit will add 200,000 million cubic feet per day of processing capacity, bringing total capacity to 800 million cubic feet per day. Construction could kick off early next year, for completion in fourth-quarter 2022. For more information, see Industrial Info's project report.
Energy Transfer also announced that it will acquire Enable Midstream Partners LP (NYSE:ENBL) (Oklahoma City, Oklahoma) in a credit-accretive, all-equity transaction valued at $7.2 billion. Long said, "The combination of Energy Transfer's and Enable's complimentary assets will allow the combined company to leverage its extensive infrastructure to pursue additional commercial opportunities and achieve cost savings while enhancing our ability to serve customers." As the transaction has been approved by Enable's two largest unit holders, CenterPoint Energy (NYSE:CNP) (Houston, Texas) and OGE Energy (NYSE:OGE) (Oklahoma City), which hold a collective 79% of Enable, no further approval from unit holders is needed.
Active potential Enable Midstream projects include the Gulf Run natural gas pipeline in Louisiana, which will include a 132-mile main pipeline and 36-mile lateral to transport up to 2.8 billion cubic feet per day. The pipeline will carry gas from Westdale, Louisiana, to interconnect with the Golden Pass Pipeline and Transcontinental network in Starks, Louisiana. Construction could kick off later this year and be completed in 2023. Click here for a list of related projects.
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 Executive Officer Tom Long gave updates on Energy Transfer's status and on the recent winter weather Texas and the U.S.
"Just to briefly touch upon the unprecedented winter weather conditions we're currently seeing across the country--just like the majority of our peers, we're experiencing impacts to our operations related to the extremely cold temperatures," Long said. "But we believe our operations team is second to none. And their efforts over the last few days have been remarkable. They are in constant communication with our commercial teams, and are trying to do what is best for our customers, particularly those serving human needs, customers and electric generation facilities. The situation is changing constantly. And our team is addressing these challenges on an hour-by-hour basis as best as possible."
Long went on to discuss the company's accomplishments in 2020: "Operationally, we moved a record number of NGLs [natural gas liquids] through our pipelines portfolio in 2020, primarily driven by our Mariner East and Texas NGL pipeline systems. And our fractionation volumes also reached a new high during 2020 due to additional ramp up of volumes on Frac 7, which went into service in February of 2020." Construction of Frac 7 at Energy Transfer's Lone Star complex in Mont Belvieu, Texas, began in late 2018, with S&B Engineers and Constructors Limited (Houston, Texas) providing engineering, procurement and construction (EPC) services. The fractionator increased the complex's fractionation capacity by 150,000 barrels per day (BBL/d), boosting it to a total of 900,000 BBL/d. For more information, see Industrial Info's project report.
The company is in the middle of constructing an eighth fractionator, adding another 150,000 BBL/d of capacity; however, the completion date for this project has been moved back to next year because of market conditions brought about the COVID-19 pandemic. For more information, see Industrial Info's project report.
Other projects completed in 2020 include an expansion of the liquefied petroleum gas (LPG) terminal and ethane export terminal in Nederland, Texas, from which Energy Transfer loaded its first very large ethane carrier with a 911,000-barrel cargo in January. For more information, see Industrial Info's project reports on the LPG terminal and ethane export terminal.
For 2021, the company expects about to spend about $1.45 billion for growth capital, down from approximately $3.05 billion in 2020. This year's growth capital spending includes about $250 million that was deferred from last year.
Active Energy Transfer projects that are underway include the Revolution cryogenic gas processing plant in Bulger, Pennsylvania. The facility will have a processing capacity of 440 million cubic feet per day of natural gas, producing natural gas liquids and fractionated ethane from the Marcellus and Upper Devonian areas. Construction on the project began in 2016, but commissioning was delayed due to pipeline issues. The project is now on track to be completed in the coming months. For more information, see Industrial Info's project report.
Other active projects include the Arrowhead Train 4 gas processing addition at the company's facility in Coyanosa, Texas. The unit will add 200,000 million cubic feet per day of processing capacity, bringing total capacity to 800 million cubic feet per day. Construction could kick off early next year, for completion in fourth-quarter 2022. For more information, see Industrial Info's project report.
Energy Transfer also announced that it will acquire Enable Midstream Partners LP (NYSE:ENBL) (Oklahoma City, Oklahoma) in a credit-accretive, all-equity transaction valued at $7.2 billion. Long said, "The combination of Energy Transfer's and Enable's complimentary assets will allow the combined company to leverage its extensive infrastructure to pursue additional commercial opportunities and achieve cost savings while enhancing our ability to serve customers." As the transaction has been approved by Enable's two largest unit holders, CenterPoint Energy (NYSE:CNP) (Houston, Texas) and OGE Energy (NYSE:OGE) (Oklahoma City), which hold a collective 79% of Enable, no further approval from unit holders is needed.
Active potential Enable Midstream projects include the Gulf Run natural gas pipeline in Louisiana, which will include a 132-mile main pipeline and 36-mile lateral to transport up to 2.8 billion cubic feet per day. The pipeline will carry gas from Westdale, Louisiana, to interconnect with the Golden Pass Pipeline and Transcontinental network in Starks, Louisiana. Construction could kick off later this year and be completed in 2023. Click here for a list of related projects.
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.
