Crosstex Energy announces binding open season for NGL pipeline project

DALLAS, Texas - In accordance with the open access requirements of the Federal Energy Regulatory Commission, Crosstex NGL Pipeline, L.P. on Sept. 14 announced the start of a binding open season for volume commitments for interstate common carrier transportation service on a new Crosstex NGL Pipeline that will transport unfractionated natural gas liquids (NGLs) produced in the Permian Basin, Midcontinent, Barnett Shale, Eagle Ford Shale and Rocky Mountain areas from the Mont Belvieu, Texas, area to NGL fractionation facilities in Eunice and Riverside, La.

The open season began on September 14, and will close on Oct. 14.

As announced on July 25, the Crosstex Energy companies - Crosstex Energy, L.P. (NYSE: XTEX) and Crosstex Energy, Inc. (NYSE: XTXI) plan to construct the Crosstex NGL Pipeline.

This common carrier pipeline will have a preliminary design capacity of at least 70,000 barrels per day (b/d) to Eunice, with a lesser amount of capacity available to Riverside.

The Crosstex NGL Pipeline is scheduled to be operational in the first quarter of 2013.

Crosstex announces Louisiana gas liquids pipeline, fractionation project

DALLAS, Texas - The Crosstex Energy companies, Crosstex Energy, L.P. (the partnership) and Crosstex Energy, Inc. (the corporation), on July 25 announced that the partnership is completing engineering studies, pipeline routing work and environmental permitting for a natural gas liquids (NGL) project that will expand Crosstex's Louisiana fractionation facilities and expand access to these facilities and Louisiana product markets through a new NGL pipeline.

The new pipeline will be an extension of the partnership's 440-mile Cajun-Sibon NGL pipeline that is connected to the partnership's Eunice NGL fractionation facilities in south central Louisiana.

, Williams Olefins

The new 130-mile, 12-inch NGL pipeline extension will connect the Eunice fractionation facilities to Mont Belvieu supply pipelines and will have an initial capacity of 70,000 barrels per day (b/d) of raw-make NGLs.

The project also includes the expansion of the partnership's Eunice NGL fractionation facilities from 15,000 b/d to 55,000 b/d of NGL, which will increase the Partnership's interconnected fractionation capacity in Louisiana to approximately 97,000 b/d of NGLs.

The partnership's investment for the project is currently estimated at $180 million to $220 million.

The partnership has entered into a long-term ethane sales agreement with Williams Olefins, LLC, a subsidiary of the Williams Companies, providing a secure market for the key product in the project. The ethane will flow into Williams' ethane pipeline system in Louisiana. In addition, the Partnership has its own supply from its Texas gas plants and commitments for supply from a select group of NGL suppliers.

The partnership is negotiating additional long-term commitments for the new system expansion, which will provide producers and other midstream companies with an attractive alternative market for their NGL production at Mont Belvieu pricing.

"This is an exciting opportunity for Crosstex and gives us a tremendous growth platform as we expand our integrated NGL system and optimize our assets," said Barry E. Davis, Crosstex president and CEO.

The new NGL pipeline extension will originate from interconnections with major Mont Belvieu supply pipelines, providing connections for NGLs from the Permian Basin, Midcontinent, Barnett Shale, Eagle Ford Shale and Rocky Mountain areas to the Partnership's NGL fractionation facilities in South Louisiana. In addition to an attractive ethane market, the Partnership's facilities in South Louisiana provide access to markets for the remaining components of the NGL barrel.

Construction of the new NGL pipeline extension is expected to begin in the second quarter of 2012, and the facilities are expected to be operational in the first quarter of 2013.

Crosstex Energy adds new supply to North Texas gathering system

DALLAS, Texas - The Crosstex Energy companies, Crosstex Energy, L.P. (Nasdaq: XTEX) and Crosstex Energy, Inc. (Nasdaq: XTXI) announced on June 21 that the Partnership has entered into a 10-year firm transportation agreement with a major Barnett Shale producer for an additional 50 million cubic feet of natural gas per day on its North Texas gathering system. Crosstex is constructing a compressor station on an existing gathering line to accommodate the customer's transportation requirements.
The project is scheduled to be completed and operational in the first quarter of 2011.
Incremental investment required for the project is estimated to be less than $10 million and the annual cash flow from the agreement is expected to be approximately $8 million.
"This agreement is a prime example of how our strategic position in the Barnett Shale adds value. We are able to make relatively low-cost, incremental investments that generate high returns and enhance the utilization of our core assets," said Barry E. Davis, Crosstex president and CEO. "We will continue to look for opportunities in North Texas where our operations are located in the heart of the Barnett Shale, one of the most significant shale plays in the U.S."

Kinder Morgan buying Crosstex gas assets for $266 million

HOUSTON - Kinder Morgan Energy Partners LP said on Aug. 31 that it will purchase the natural gas treating business of Dallas-based Crosstex Energy LP and Crosstex Energy Inc. for about $266 million.
The deal, which is expected to close in the fourth quarter, will make the Houston pipeline transportation company the largest provider of contract-provided treating plants in the United States.
KMP is purchasing approximately 290 amine-treating and dew-point control plants predominantly located in Texas and Louisiana, with additional facilities in Mississippi, Oklahoma, Arkansas and Kansas. The transaction will make KMP the largest provider of contract-provided treating plants in the United States.
“We are pleased to have the opportunity and financial strength to grow our company even during difficult economic times,” said Richard D. Kinder, chairman and CEO of KMP. “We look forward to offering natural gas treating services to our Texas intrastate customers and to other producers in various supply basins, including the rapidly developing shale plays.

Crosstex Energy to sell some pipeline assets for $220 million

DALLAS, Texas - Crosstex Energy LP has signed a deal to sell pipeline assets in Mississippi, Alabama and South Texas to Southcross Energy LLC for $220 million.
Crosstex Energy LP, a partnership partly owned by Crosstex Energy Inc., said on June 10 that the money will allow it to satisfy debt reduction targets set by amendments to its debt facilities. The pipeline systems generated gross margin in the first quarter of $12 million, and cost $4 million to operate, the company said.
“These are perfect assets to provide the foundation of our new company,” said David Biegler, chairman and chief executive officer of Dallas-based Southcross Energy.
The Mississippi and Alabama systems being acquired consist of approximately 780 miles of intrastate gathering and transmission pipelines with throughput capacity of about 185,000 million British thermal units per day (MMBtu/d). The South Texas system consists of approximately 1,400 miles of intrastate gathering and transmission pipelines with throughput capacity of about 600,000 MMBtu/d and two processing facilities with a total processing capacity of approximately 195,000 MMBtu/d.