Energy Transfer to Build Fifth Mont Belvieu Fractionator

Researched by Industrial Info Resources (Sugar Land, Texas)--Executives at Energy Transfer Partners (NYSE:ETP) (Dallas, Texas) recently discussed progress on some of the company's active capital projects, including the controversial Dakota Access Pipeline. Among the chief announcements made on Thursday was the construction of a fifth natural gas fractionator at the company's facility in Mont Belvieu, Texas. Industrial Info is tracking $17.3 billion in projects involving Energy Transfer Partners.

In a conference call regarding recent developments and earnings, Chief Financial Officer Tom Long discussed projects at the company's Lone Star natural gas processing facility in Mont Belvieu: "Frac[tionator] 4 was placed in service in October 2016, ahead of schedule. Our four fractionators are currently operating at or above nameplate capacity. Due to the continued strong demand for fractionation services and the tremendous growth in the Delaware Basin, we are pleased to announce that we will construct a fifth fractionator in Mont Belvieu, which will have capacity of 120,000 barrels a day and also include NGL [natural gas liquids] product infrastructure. ... Frac 5 is fully subscribed by multiple long-term, fixed-fee contracts and is expected to be in service in September of 2018."

Among the other chief projects discussed was the company's Rover pipeline project, which is designed to transfer gas from the Marcellus and Utica shales to market hubs that can reach markets throughout the U.S., including the Northeast and Gulf Coast. Long said in the conference call: "We received the FERC certificate to construct and operate the Rover project on February 2. At that time, FERC's [Federal Energy Regulatory Commission] order also approved Rover's proposed tariff rate without modification."

Long added that Energy Transfer still needs a permit from the U.S. Army Corps of Engineers for one district and a water quality certificate from the Ohio Environmental Protection Agency, both of which the company anticipated receiving no later than today.

"We continue to anticipate being in service to the Midwest hub near Defiance, Ohio, in July, and to the markets in Michigan and the Union Gas Dawn Hub in November of 2017," Long said.

Discussing the Dakota Access Pipeline, Long said: "On February 8, 2017, Dakota Access received the easement from the U.S. Army Corps of Engineers to construct a pipeline across the land owned by the Army Corps on both sides of Lake Oahe in North Dakota. Dakota Access now has received all federal authorizations necessary to complete construction of the pipeline. The Dakota Access Pipeline is now 99% complete."

Long said the company expects service to begin on the pipeline in the second quarter of 2017. For more information on the recent developments that helped move the pipeline along, see January 31, 2017, article - Trump Orders Benefit KXL, DAPL and Other 'High Priority' Infrastructure Projects.

The company has not launched the remaining open season on the pipeline, but expects to do so within the next 30 to 60 days.

Long said the company expects organic growth expenditures in 2017 to be approximately $2.8 billion, compared with $3.2 billion in 2016, the majority of which will be spent on projects in the company's interstate and midstream segments. The company is forecasting maintenance expenditures of $325 million to $365 million for the year.

Energy Transfer Partners reported fourth-quarter 2016 net income of $233 million, compared to $314 million in fourth-quarter 2015.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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/.