ETP purchases pipeline system from EdgeMarc Energy

Energy Transfer Partners LP (NYSE: ETP) has provided further details on its previously announced Revolution Project that will increase its operations in the growing Marcellus and Upper Devonian production areas of Western Pennsylvania. ETP has entered into long-term gas gathering, processing, and fractionation agreements with EdgeMarc Energy.

To facilitate these agreements, ETP has purchased approximately 20 miles of high-pressure pipeline from EdgeMarc and will build a new cryogenic gas processing plant, a new fractionator and additional gas gathering pipelines.

ETP plans to construct 100 miles of high pressure 24- and 30-inch rich-gas pipeline providing a total gathering system capacity in excess of 440 million cubic feet per day. The Revolution Pipeline originates in Butler County, Pennsylvania, and will extend to ETP’s Revolution Plant, a new cryogenic gas processing plant to be constructed in Western Pennsylvania. The Revolution Plant is expected to be in-service by the second quarter of 2017 and will allow for future processing growth for additional third-party gas.

The residue gas from this plant will be delivered into ETP’s Rover interstate pipeline for deliveries to downstream markets. The natural gas liquids (NGLs) will be delivered to Sunoco Logistics’ (SXL’s) Mariner East pipeline system for delivery to domestic and export markets. As a result, this new system and associated facilities provide attractive incremental revenue benefits to both the Rover pipeline and SXL’s Mariner East pipeline system, while at the same time providing flow assurance for natural gas and associated NGLs from wellhead to end markets for producers in these areas.

The project also includes a fractionation facility that will be constructed at SXL’s Marcus Hook Industrial Complex in Marcus Hook, Pennsylvania. The fractionation facility is expected to be in service by the second quarter of 2017.

The overall expected capital cost for the pipeline system and the associated facilities, which will be supported by long-term fee-based agreements, is approximately $1.5 billion.

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