Crosstex Energy Companies, including Crosstex Energy, L.P. (NASDAQ: XTEX) and Crosstex Energy, Inc. (NASDAQ: XTXI), has reactivated its Eunice natural gas liquids (NGL) fractionator in south central Louisiana, which will give Crosstex operational flexibility, increased fractionation capacity and the ability to capture new NGL-related business. The two North Texas projects became operational in late March 2011 and the Euncie NGL fractionator became operational April 5, 2011.
The Eunice NGL fractionator was reactivated with the necessary equipment to accommodate 15,000 barrels of NGLs per day. Additional capacity of 21,000 barrels per day can be restarted as supplies grow.
“We have great flexibility to increase the utilization of our asset infrastructure in Southern Louisiana. Demand for fractionation and NGL handling is increasing as producers make liquids-rich gas production a priority,” said Davis.
The Eunice start-up and expansion project will increase the Partnership’s existing fractionation capacity for liquids products from 40,000 barrels per day to 55,000 barrels per day. The initial incremental investment required to restart the fractionator is approximately $7.6 million, and the annual cash flow to be generated from the expansion will be approximately $3.5 million with current committed volumes.
The Eunice complex, which includes the fractionator and a gas processing plant, provides access to important Southern Louisiana petrochemical and refinery markets and the Dixie Pipeline Company’s propane pipeline. Restart of the fractionator, which has been idle since 2007, provides Crosstex with new business opportunities. The Eunice site includes a truck and rail unloading terminal that receives NGLs for fractionation from U.S. markets, including volumes from the Marcellus and other emerging shale plays, where there are limited markets and NGL infrastructure. In addition, the Eunice complex is connected to onshore natural gas supply in Louisiana, and shallow and deep water production from the Gulf of Mexico.