Project Provides Substantial Economic Benefits in Louisiana and
DALLAS--(BUSINESS WIRE)--Feb. 8, 2012--
The Crosstex Energy companies, Crosstex Energy, L.P. (NASDAQ:XTEX) (the
Partnership) and Crosstex Energy, Inc. (NASDAQ:XTXI) (the Corporation),
today announced that the Partnership has received sufficient long-term
supply commitments to proceed with the construction of its Cajun-Sibon
extension, a 130-mile, 12-inch-diameter natural gas liquids (NGL)
pipeline. The pipeline will extend the Partnership’s existing 440-mile
Cajun-Sibon NGL system and connect Crosstex’s NGL fractionation
facilities in south central Louisiana to Mont Belvieu supply pipelines
in East Texas. The extension allows the Partnership to provide producers
and midstream companies an attractive alternative market for their NGL
production at Mont Belvieu pricing. The Partnership is currently
negotiating additional long-term agreements for the remaining capacity
and expects the new pipeline will begin operations at or near its
initial capacity of 70,000 barrels of NGL per day.
The Partnership will begin construction in the third quarter of 2012 as
scheduled. Due to strong supplier interest, the pipeline project has
been expanded since it was announced in July 2011 and now includes an
additional supply connection. The total capital investment is now
estimated at $230 million. The new pipeline and facilities are expected
to be operational in the first half of 2013.
As previously announced, the Partnership has entered into a long-term
ethane sales agreement with Williams Olefins, LLC, a subsidiary of the
Williams Companies, which provides a secure market for the key product
in the project. The Partnership’s facilities in South Louisiana provide
an attractive ethane market, as well as market access for the remaining
components of the NGL barrel.
“We are pleased with the strong interest in this project,” said Barry E.
Davis, Crosstex President and Chief Executive Officer. “The willingness
of midstream and producer customers to make long-term commitments
reflects increasing demand for fractionation and NGL handling as
producers continue to pursue liquids-rich natural gas plays. We will be
able to offer our customers an integrated NGL transportation,
fractionation and marketing alternative to Mont Belvieu.”
Project Provides Economic Benefits in Louisiana and Texas
The Cajun-Sibon pipeline extension and expansion of the Eunice
fractionation facilities will provide substantial economic benefits in
Louisiana and Texas according to the economic impact study prepared by
Dr. James A. Richardson. In Louisiana, it is estimated that the
Cajun-Sibon project will produce additional business activity of $206.9
million and 1,351 net new jobs during the construction period. In Texas,
the construction project will lead to average additional business
activity of $131.9 million and 1,014 net new jobs.
The completed study can be found at www.crosstexenergy.com.
About the Crosstex Energy Companies
Crosstex Energy, L.P., a midstream natural gas company headquartered in
Dallas, operates approximately 3,300 miles of pipeline, nine processing
plants and three fractionators. The Partnership currently provides
services for 3.2 billion cubic feet of natural gas per day, or
approximately six percent of marketed U.S. daily production.
Crosstex Energy, Inc. owns the two percent general partner interest, a 25
percent limited partner interest and the incentive distribution
rights of Crosstex Energy, L.P.
Additional information about the Crosstex companies can be found at www.crosstexenergy.com.
This press release contains forward-looking statements within the
meaning of the federal securities laws. These statements are based on
certain assumptions made by the Partnership and the Corporation based
upon management's experience and perception of historical trends,
current conditions, expected future developments and other factors the
Partnership and the Corporation believe are appropriate in the
circumstances. These statements include, but are not limited to,
statements with respect to forecasts regarding capacity, cash flow,
incremental investment and timing for becoming operational for the
projects discussed above, as well as the Partnership's future growth and
results of operations. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the
control of the Partnership and the Corporation, which may cause the
Partnership's and the Corporation's actual results to differ materially
from those implied or expressed by the forward-looking statements. These
risks include, but are not limited to, risks discussed in the
Partnership's and the Corporation's filings with the Securities and
Exchange Commission. The Partnership and the Corporation have no
obligation to publicly update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise.
Source: Crosstex Energy
Jill McMillan, 214-721-9271
Public & Industry Affairs