Alyeska to test hydraulic clamp designed to repair bullet hole leak

ANCHORAGE - Alyeska Pipeline Service Co. is planning a field exercise this year to test a hydraulically powered clamp designed to stop oil from spewing out of the trans-Alaska oil pipeline through a bullet hole.
The bullet-hole exercise is planned for a site at the Chatanika River.
A test piece of 48-inch mainline pipe will be placed at the scene and
pressurized with water to simulate a high-pressure oil spray through a bullet hole, an exercise description says. Equipment including Alyeska's HC 320 hydraulic clamp will be dispatched from the company's Fairbanks Response Base.
A simulated 60-barrel release is expected over the course of the planned 12-hour exercise, and Alyeska and regulators will time and evaluate all the activities, the exercise description says.
The drill is scheduled for the third quarter of this year, though Alyeska spokesman Matt Carle said it could come sooner to avoid conflicts with planned summer maintenance shutdowns along the pipeline.

Williams Cos. plans $55 million expansion of Transco Pipeline

TULSA, Okla. - Williams Cos. Inc. will expand its Transco pipeline by approximately 142,000 dekatherms to serve additional markets in the mid-Atlantic region, the Tulsa natural gas company announced on Jan. 22.
The Mid-Atlantic Connection expansion will deliver fuel from an interconnection with East Tennessee Natural Gas in Rockingham County, N.C., to delivery points as far north as Maryland, according to the Williams news release. The deal needs Federal Energy Regulatory Commission approval.
The parent Williams Cos. soon will shift its 10,500-mile Transco and parts of other pipeline and midstream properties to subsidiary Williams Partners LP as part of a $12 billion restructuring. The deal eventually would absorb Williams Pipeline Partners LP into the subsidiary.

Magellan agrees to pay $418,000 penalty over Oklahoma spill

TULSA, Okla. - Tulsa-based Magellan Pipeline Co. LP, a Williams Cos. spinoff, has agreed to pay a $418,000 civil penalty to resolve a lawsuit over a gasoline spill near Oologah, Okla.
Magellan agreed to the amount in a proposed consent decree filed in Tulsa federal court on Jan. 19, the same day attorneys for the U.S. Environmental Protection Agency and the U.S. Department of Justice filed the lawsuit.
The agencies alleged that a pipeline associated with Magellan ruptured on Jan. 5, 2008, and caused the discharge of at least 1,075 barrels of gasoline into Four Mile Creek near Oologah. The complaint alleged that the discharge violated the Clean Water Act.
Under the terms of the pact, Magellan doesn't admit liability to the United States.

Suncor says Alberta Clipper no longer prudent, wants lower tariff

CALGARY, Alta. - A tariff dispute between Enbridge Inc. and bitumen producer Suncor Energy over Enbridge's Alberta Clipper line has raised doubts about the necessity of the line.
During an investor symposium on Jan. 21, Enbridge disclosed that Suncor had applied with U.S. energy regulators to defer tariffs on the U.S. portion of the 1,600-kilometer line due to reduced need.
Suncor, which recently merged with Petro-Canada, said the new pipeline likely will run under capacity.
"We support additional capacity, but the timing of Clipper is no longer a prudent fit with supply," Suncor spokeswoman Sneh Seetal said. "We are concerned about the potential impact of unnecessary pipeline-related costs in view of unused capacity on the competitiveness of Canadian heavy oilsands crude into the U.S. "
Enbridge chief financial officer Richard Bird said the Clipper will start operation several months ahead of schedule, on April 1, further pressuring tariff revenues at home.
"Suncor is a significant customer, so we understand their concern with the fact that our tolls on our main-line system are going to increase as a result of circumstances that have changed since the Alberta Clipper project was approved," Bird told investors at a symposium in Whistler, B.C. "We will work with them and with (the Canadian Association of Petroleum Producers) to do everything that we can to make it right."

Montana governor wants access to TransCanada oil pipeline

HELENA - Montana Gov. Brian Schweitzer said on Jan. 20 that he wants oil companies in his state and neighboring North Dakota to be able to tap into a proposed TransCanada Keystone XL Pipeline that will run from Alberta to the U.S. Gulf Coast.
Schweitzer has asked the state Public Service Commission to investigate whether the state has authority to force Calgary-based TransCanada to allow an "onramp" for the region's oil near Baker.
That could help oil companies in the two states get better prices for their fuel, which is now often sold at a discount because of shipping constraints, Schweitzer said.
Final approval is pending for TransCanada's 1,980-mile Keystone XL Pipeline. The company hopes to start construction sometime this year.
"This is a pre-emptive move to make sure Montana oil producers get market price for their oil," Schweitzer said. "In eastern Montana and western North Dakota, we're getting discounts of $8 to $12" per barrel below market prices.
Schweitzer said a Montana "onramp" for the pipeline also could encourage new drilling. Exploration lagged in recent months due to the ailing economy and a temporary drop in oil prices.

Enbridge announces LaCrosse pipeline to serve Haynesville Shale

SHREVEPORT, La. - Another large pipeline project to move natural gas from the Haynesville Shale and East Texas wells is being proposed by Enbridge Energy, according to the Shreveport Times.
The 340-mile interstate natural gas pipeline would originate at the Enbridge Carthage Hub in Panola County, Texas, enter DeSoto Parish north of Logansport and slice southeast before entering Natchitoches Parish. It will ultimately connect with Southern Natural Gas Pipeline in Washington Parish.
Enbridge held pen houses on Jan. 19 in Logansport and Jan. 20 in Natchitoches to provide information about the proposed 340-mile interstate pipeline.
The LaCrosse Pipeline will join a number of other major pipeline projects that have been announced since Haynesville Shale drilling exploded in northwest Louisiana and East Texas in the spring of 2008.

Native group calls for boycott of Enbridge Northern Gateway line

CALGARY, Alta. - A small first nation group in Canada’s British Columbia has made a personal appeal to Alberta energy companies, China and other governments to oppose the proposed Northern Gateway crude pipeline. Northern Gateway is a proposed Enbridge Inc. pipeline that would export oilsands crude to Asia.
The 1,170-kilometer project would bring crude from Alberta to the northern B.C. coast, where it would be loaded onto very large crude carriers (VLCCs) for transport to Asian refiners.
The project offers oilsands producers an appealing alternative market to the United States, where climate change legislation has brought some uncertainty.
On some of the pristine, salmon-rich lands Gateway would cross - safely, Enbridge says - first nations are voicing growing concerns that the line will damage the environment and leave little in return.
One of those nations, the Wet'suwet'en, took to Calgary on Jan. 15 in hopes of persuading energy companies to boycott the project. About 140 km. of Gateway would be built on Wet'suwet'en traditional territory, and the group believes the environmental approval process for the pipeline will infringe on their constitutional rights, since it does not include a mandate to look into aboriginal rights and title.

Williams announces $12 billion revamp plan for pipeline affiliates

NEW YORK - Shares of natural-gas producer and pipeline firm Williams Cos. rallied on Jan. 19 after it said before the stock market opened that it would restructure its affiliates in a series of transactions that it valued at a combined $12 billion.
At day’s end, Williams Cos. Inc. (NYSE: WMB) closed up $1.73 per share at $23.10 per share (up 8.10 percent). Williams Partners LP (NYSE: WPZ) closed up $5.60 per share at $36.39 (up 18.19 percent), and Williams Pipeline Partners LP (NYSE: WMZ) closed up $3.84 at $27.19 (up 16.45 percent).
Williams said it plans to contribute its gas pipeline business and domestic distribution system and its limited and general partner interests in Williams Pipeline Partners into Williams Partners LP.
After the transactions, Williams Pipeline Partners will no longer be publicly traded.
"The restructuring is intended to drive additional growth and value for Williams' shareholders and Williams Partners' unitholders," Williams said.
"The moves will result in two well-capitalized entities that are better positioned to pursue value-adding growth strategies; both expect to have investment-grade credit ratings."
As part of the deal, Williams will purchase $3 billion of its corporate debt from the $3.5 billion in cash it will receive from Williams Partners. That cash, plus the value of 203 million Williams Partners units and $2 billion in assumed debt comprise the bulk of the $12 billion value for the deal.
Williams Partners will boost its regular quarterly distribution by 3.5 percent per LP unit to 65.8 cents from 63.5 cents starting with the first quarter.
Williams Partners will offer a fixed exchange ratio of 0.7584 of its common units for each Williams Pipeline Partners common unit. The exchange values Williams Pipeline Partners at $23.35 a unit, flat with its closing price on Jan. 15.

Florida Power & Light suspends long-term projects, hints at job cuts

TALLAHASSEE, Fla. - Florida Power & Light and its suppliers on Jan. 14 denounced state regulators' decision to reject nearly all of the company's $1.3 billion rate increase, calling the ruling politically motivated and short-sighted, though business and consumer groups hailed it as sound.
Florida Power & Light, which spent $6 million and 10 months lobbying state regulators to raise the rates its customers pay by $1.3 billion, on Jan. 13 got virtually nothing.
The Public Service Commission unanimously rejected the company's request to raise its base rates 30 percent, allowing an increase of only $75.4 million - about 75 cents a month on a 1,000-kilowatt-hour bill.
The commission dismissed nearly every major issue FPL raised, saying that in a better economy the company might have done better. “Utilities are just going to have to make do in these difficult economic times,” said Commissioner Nathan Skop.
Because of a reduction in fuel costs, FPL's 4.5 million customers will pay about $13 a month less for 1,000 kilowatt hours in 2010 than they did in 2009 for the same amount of electricity. The savings take effect this month.
The commission rejected every major piece of FPL's argument - from its request to be allowed to award $49 million in executive compensation to its request to be able to set aside an additional $150 million for future storm damage. The commission also rejected the recommendation of its staff - which suggested the company be allowed to raise its rates $357 million.
FPL focused on the impact the decision will have on potential jobs, announcing on Jan. 13 that the company will suspend about $10 billion in planned capital projects in Florida over the next five years.
Among the suspended long-term projects: the construction of two new reactors at the Turkey Point nuclear plant, a natural-gas pipeline, modernization of the Riviera Beach and Cape Canaveral plants and upgrades to its transmission and distribution systems.
FPL said it will continue to seek a license from the Nuclear Regulatory Commission for the nuclear reactors, but it won't take any steps toward construction beyond what is required to receive the license.
Officials remained silent about any layoffs, but the company made plans to internally broadcast a town hall-style meeting with employees.
Public Counsel J.R. Kelly, who represented customers in the rate case, said that the commission's ruling should have no impact on employee jobs because the ruling allowed the company to continue collecting the revenues it needs to provide safe, adequate and reliable service at a quality level.
In Orlando, Siemens Energy said the decision could threaten 250 jobs it had intended to create as part of a contract to supply gas turbines over the next five years and provide service to FPL's Riviera Beach and Cape Canaveral plants.
The head of FPL's parent company said the PSC's decision to reject all but $75.4 million of the company's request indicated a worsening regulatory environment that has already started to scare off investors.
FPL and Progress Energy had asked for a $500 million rate increase but got nothing from the PSC during a Jan. 11 hearing.

OSHA cites three companies in fatal Midcontinent Express accident

JACKSON, Miss. - Three companies are being cited by the U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) for exposing workers to hazards during the construction of gas pipeline meter stations in Mississippi.
Mustang Engineering L.P., Grand Bluff Construction LLC and Priority Energy Services received citations for failing to protect their workers after one died and three others were critically injured.
OSHA began its investigation after a July 2009 explosion at a meter station construction site in Raleigh, Miss., killed one worker. A second Priority Energy Services worker was critically injured, along with two Grand Bluff Construction workers.
"This tragedy could have been avoided if the companies involved had followed government and industry standards when conducting their
pressure tests," said Clyde Payne, director of OSHA's Jackson Area
Office.

FERC said ready to approve Ruby and Bison gas pipelines in West

BILLINGS, Mont. - Federal regulators are recommending approval of two natural gas pipelines that could increase fuel shipments from the Rockies to population centers in the Midwest and on the West Coast.
The Rockies hold an estimated 375 trillion cubic feet of natural gas, almost as much as the Gulf of Mexico.
Combined, the two latest proposed pipelines would move almost two billion cubic feet of natural gas a day.
The Federal Energy Regulatory Commission is expected to make final decisions on the Bison and Ruby pipelines in the next two to three months, said agency spokeswoman Tamara Young-Allen. Construction could begin by spring.
Building the pipelines - each hundreds of miles long - entails crossing more than 1,200 streams and other bodies of water and disturbing thousands of acres of undeveloped land, according to recent environmental studies by the commission's staff.
TransCanada's $610 million, 310-mile Bison pipeline would run from Gillette, Wyo., through southeastern Montana to Morton County, N.D. From there, the line would feed into other pipelines serving the Midwest.
El Paso Corp.'s $3 billion Ruby pipeline would run from Opal, Wyo., to Malin, Ore., passing through Utah and Nevada along a 675-mile route.
Environmentalists have singled out the Ruby pipeline as particularly damaging because of its route through the remote wilds of northern Nevada. Also, horse advocates claim the project is prompting the removal of wild mustang herds along the proposed route by the Bureau of Land Management.
But commission staff concluded the environmental effects would be outweighed by the economic benefits of the pipelines, including roughly $30 million in annual property taxes. They also said the routes chosen minimized harm to the environment.
In Wyoming, officials have pushed hard for the projects. In December, they approved a state investment in Ruby of up to $300 million.
The Ruby project is intended to fill a gas supply gap on the West Coast as imports from Canada taper off, while Bison would give energy producers in Wyoming's remote Powder River Basin new access to markets, company officials said.
That could give producers across the Rockies opportunities to get better prices for their fuel.

Enbridge restarts crude line involved in massive oil spill in North Dakota

BISMARCK, N.D. - Enbridge Energy Partners LP of Houston, Texas, said that repairs to an oil pipeline that ruptured on Jan. 8 in North Dakota are now complete and the pipeline was placed back in operation at 9:30 a.m. on Jan. 13.
Line 2b of Enbridge's Lakehead Pipeline System leaked an estimated 3,000 barrels (126,000 gallons) of light crude oil in Pembina County, N.D., on Jan. 8. The flow of oil continued on a parallel line and there was no interruption of crude deliveries to Enbridge's customers.
Enbridge said the spilled crude oil collected entirely within its easement. just south of the Canadian border near Neche, N.D. The damaged section of pipe has been sent to a lab for determination of why it ruptured.
Authorities say the ground was frozen at the leak site and didn't absorb the oil. Contaminated snow was taken to landfills.
There was no effect on water resources or wildlife in the area, Enbridge said.
The company and regulatory authorities are investigating the cause of the leak. The company has so far released no details of why the pipeline failed. However, Enbridge lines have experienced a number of ruptures attributed to transportation-induced weld seam stress cracking.
The pipeline is being operated at 80 percent of its maximum allowable operating pressure while Enbridge and regulators continue their investigations.
Line 2b, which was restarted, runs from Cromer, Manitoba, to Superior, Wis. Enbridge had closed the section between Cromer and Clearbrook, Minn., while the repairs were under way. The maximum capacity of the line is 440,000 b/d.
Enbridge Energy Partners LP is the Houston-based U.S. operating arm of Canadian pipeline company Enbridge. Portions of the failed crude line in Canada are owned and operated by Enbridge, while the portions in the United States are owned and operated by Enbridge Energy Partners LP.
Final cleanup continues at the leak site.

Atmos Energy accused of dishonesty in Texas gas explosion

MESQUITE, Texas – A local television station has accused Atmos Energy of being dishonest in denying its natural gas resulted in an explosion that destroyed a local home.

The Mesquite couple that owns the home is outraged over what it feels is a potentially deadly mistake made by Atmos Energy.

The Samons' house exploded Nov. 20, 2009. Atmos crews said natural gas was not involved, and it wasn't their problem. Atmos claimed a build-up of carbon monoxide was responsible for the blast that leveled the home.

WFAA-TV of Dallas-Fort Worth contended in on-air news coverage on Jan. 6 that it had learned that not only was Atmos wrong, but that gas leaks were found behind the Samons' house and all over the neighborhood, and gas fittings with a legacy of failure were involved.

The station, News 8, began investigating natural gas compression coupling failures in 2007.

Kristin Samons was lying on her sofa that afternoon when an explosion ripped through her house. It destroyed the back of her home and threw her across her living room.

"It was just a loud sound, and at the same time my body was just flying across the room," Samons said. She escaped the destruction with only a bump on her head.

Atmos Energy crews quickly declared that a build-up of carbon monoxide, not natural gas, was to blame.

"That didn't make sense to me, and no, I didn't accept it," Samons said.

Two weeks later, insurance company investigators insisted Atmos re-investigate. This time, natural gas safety inspectors with the Texas Railroad Commission were called in. State investigators discovered two natural gas compression couplings leaking at the main under the alley behind the Samons' home.

A follow-up survey of the entire neighborhood turned up something disturbing - gas leaks at more than 24 other locations. "That tells me there's a problem and somebody needs to do something quickly before somebody else around here gets hurt or killed," Samons said.

Atmos crews spent the next several days scouring the neighborhood near Town East Mall detecting and repairing leaks.

Sharon Dornon lives across the street.

"They came over and checked my yard for gas leaks," she said. "They checked David's and Jerry's next door, and they said we had a leak also."

Others in the neighborhood were told by Atmos officials that they were just conducting routine operations.

"Public safety, as well as the safety of our employees, is Atmos Energy's number one priority," said Atmos Energy Spokesman Ray Granado. "We will continue to assist and cooperate with the ongoing investigation." (Source: Brett Shipp, WFAA-TV Dallas-Fort Worth, Jan, 6, 2010)

NorthernStar says construction of Oregon LNG terminal to begin

BRADWOOD, Ore. - NorthernStar Natural Gas says it is nearing the end of the long federal and state approval process for its liquefied natural gas terminal on the Columbia River and could begin construction by the end of this year.
The Houston company said it has begun consulting with the National Marine Fisheries Service and the Federal Energy Regulatory Commission on the impacts the Bradwood, Ore., terminal would pose to endangered species. NMFS is expected to rule in a Biological Opinion expected between March and May whether the risks are acceptable.
In a statement, NorthernStar president Paul Soanes called it "a major milestone" that "puts Bradwood Landing on track to complete its permitting
by next summer, allowing construction to begin later in 2010."
NorthernStar plans to bring LNG tankers 38 miles up the Columbia, where they would unload superchilled gas into storage tanks. The gas would be warmed and pumped to market through at least one pipeline that would cross the Columbia River and connect with the Williams pipeline just north of Kelso.
Should federal regulators determine the project meets the requirements of
the Endangered Species Act, NorthernStar will still have to get approvals
from Washington and Oregon under the clean air, clean water and Coastal Zone Management acts. FERC's decision to approve the project also faces an appeal from various environmental groups and state and federal agencies in the 9th Circuit Court of Appeals.

Enbridge cleaning up 3,000-bbl. crude spill in North Dakota

PEMBINA COUNTY, N.D. - Enbridge Energy Partners LP shut down one leg of the main pipeline delivering Canadian crude to the United States after discovering a leak, but said it was rerouting supplies via other lines.
Enbridge said it had shut down Line 2b of the Enbridge Lakehead Pipeline System with a capacity of 440,000 b/d, equivalent to about a fourth of the total throughput on Lakehead.
The rupture was discovered late on Jan.8 in Pembina County, N.D.
Enbridge initially estimated the spill at about 3,000 barrels, or 126,000 gallons, of light crude oil. The accident was reported to federal and state regulatory authorities.
Enbridge said that water and wildlife had not been affected. The cause of the leak is under investigation, it said.
Line 2b runs from Cromer, Manitoba, to Superior, Wis. The segment of Line 2b between Cromer and Clearbrook, Minn. likely will remain out of service through Jan. 11, Enbridge said.

Enbridge completes North Dakota pipeline expansion

CALGARY, Alta. - Enbridge Inc. said on Jan. 5 that it has completed a $147 million expansion of its North Dakota oil pipeline system to handle rising production from the prolific Bakken oilfield.
Capacity on the system, controlled by Enbridge's U.S. affiliate Enbridge Energy Partners LP, has been boosted by 40,000 b/d at the system's western end, which runs to Minot, N.D., while the Minot to Clearbrook, Minn., leg of the system can handle an additional 51,000 b/d.
The expansion, which opened on Jan. 1, raises the total capacity of Enbridge's North Dakota system to 161,000 b/d to accommodate rising output from the Bakken, a massive oilfield lying under parts of North Dakota, Montana and southern Saskatchewan.

Court rules against Baltimore LNG proposal

BALTIMORE, Md. - A federal appeals court has upheld Maryland's decision to deny a water quality certification for a liquefied natural gas terminal at Baltimore's Sparrows Point.
A three-judge panel of the 4th U.S. Circuit Court of Appeals denied Arlington-based AES Corp.'s petition for review in late December. AES had argued Maryland failed to decide on its application within a year of its proposal and the state's certification denial was "arbitrary and capricious" because it considered water flow a form of pollution under the Clean Water Act.
But the court panel ruled that Maryland regulators decided within one year of the Army Corps of Engineers' provision of necessary information - not when AES had submitted its application.
Further, the opinion holds that Maryland properly considered how water flow would be affected by the additional dredging needed for LNG tankers. The court agreed with the state that the dredging would induce "pollutants" by creating deep channels where the dissolved oxygen levels would not meet water standards.
"Maryland examined the relevant data pertaining to the effect on water quality in the areas of the proposed deep channel dredging and articulated a satisfactory explanation for its denial on that basis," the panel wrote.
The ruling could have an effect on other proposed LNG facilities, especially those in Oregon where the state is still reviewing required permits and similar environmental concerns have been raised.

Hyperion says plans on schedule for first new refinery in U.S. since 1970s

ELK POINT, S.D. - On its original timeline, 2010 was to be the year Hyperion Resources began construction on 3,800 acres of farmland near Elk Point of the nation's first new oil refinery since 1976.
But as 2009 faded into 2010, consumer demand for gasoline and diesel has fallen off. A tough economic climate led to five refineries being shuttered in 2009 as refiners struggled to make a profit.
Still, the Dallas-based developers say that they plan to get shovels into the ground in 2011, and that Hyperion will be refining Canadian tar sands crude into gasoline and diesel by 2015. They always have maintained that the $10 billion project is profitable with oil at $60 a barrel.
"We're currently in one of those phases where the big announcements are infrequent, but the hard work and attention to detail are paramount," Hyperion spokesman Eric Williams said.
"On one track, we're doing work necessary to forge ahead to obtain additional permits and consents. ... On the other track, we're working to further secure our crude oil supply and do other preparatory work on the business development side," he said.
Opponents vow to continue their fight against the refinery. Save Union County officials filed a legal challenge to the state air permit Hyperion received in September, and a hearing tentatively is scheduled for June. Group members, along with the Sierra Club, are monitoring the air quality around Union County independently of the state. Opponents also plan to ask the Environmental Protection Agency to step in and review concerns that the agency had about the air permit.
"We're also waiting for those other permits' applications to be filed," said Ed Cable, head of Save Union County. "We're also educating people to our concerns."
Project opponents also continue to watch environmental and economic barriers to the project. With consumers moving toward hybrid vehicles, the demand for gasoline isn't likely to increase, they say. And they contend that country's existing 150 refineries - currently, 141 are operating, with nine idle - can handle the nation's demand well into the future.

Magellan gas spill in Wisconsin located at site of 1998 contamination

KRONENWETTER, Wis. - An estimated 25,000 gallons of gasoline contaminated soil and groundwater in Kronenwetter in December when an underground pipeline ruptured, according to the Wisconsin Department of Natural Resources.
The broken pipe was discovered Dec. 4 when an inventory of gasoline by the Magellan Pipeline Co. came up short at its Kronenwetter terminal, according to a DNR news release issued in late December.
The gasoline plume spread 20 feet below the pipeline, officials said.
Investigators with the state Department of Health and Family Services and the Marathon County Health Department determined there was no risk to the public, according to the news release. Gasoline vapors in the soil will be monitored, officials said
The compromised pipe has since been repaired and crews are pumping out gasoline floating on the surface of the groundwater, the DNR said. Once the gasoline is removed, Magellan will work with the DNR to remove the fuel dissolved with the soil and groundwater, according to the release.
Groundwater samples collected from wells on Magellan's property show the contamination has not spread to other properties, according to the DNR.Wi
The pipeline was the site of major contamination discovered in 1998 when a nearby resident detected a gas odor in the home's water. That contamination is suspected to have occurred in the 1970s when a fuel truck spilled over.
The town of Kronenwetter, as the area was known at the time, installed a new water and sewer system after the groundwater contamination seeped into residents' private wells.
Williams Pipe Line Co., which owned the pipeline at the time, reached a $3 million settlement with 140 nearby homeowners.

Targa Resources to expand Cedar Bayou NGL plant at Mont Belvieu

HOUSTON - Targa Resources Partners LP of Houston plans to expand capacity of its majority-owned Cedar Bayou Fractionators LP natural gas liquids fractionation facility at Mont Belvieu, Texas.
The maximum gross fractionation capacity of the facility is to be expanded by 60,000 b/d to 275,000 b/d, increasing the partnership's maximum gross NGL fractionation capacity along the Texas and Louisiana Gulf Coast to 439,000 b/d.
The CBF expansion is to be supported by a long-term firm space fractionation agreement at market-based fees with Oneok Partners LP.
The expansion will increase Targa Resources’ fee-based percentage of operating income, said Rene Joyce, chief executive of the partnership's general partner and of Targa Resources.