The Crosstex Energy companies, Crosstex Energy, L.P. XTEX (the
Partnership) and Crosstex Energy, Inc. XTXI (the Corporation), today
announced that the Partnership is proceeding with Phase II of the
Partnership's Cajun-Sibon natural gas liquids (NGL) pipeline extension and
fractionator expansion in Louisiana. In addition, construction of Phase I of
the project is underway and is expected to commence operations by mid-2013.
The total capital investment for both phases of the project is currently
estimated at $680-$700 million. The Partnership expects Phase II to have an
annual run-rate adjusted EBITDA contribution of $75-$85 million.
Phase II, which is expected to be completed in the second half of 2014, will
include the following: the expansion of the Partnership's Cajun-Sibon pipeline
capacity by an additional 50,000 barrels per day of raw-make NGL for a total
project capacity of 120,000 barrels per day; the installation of a
100,000-barrel-per-day fractionator adjacent to the Partnership's Plaquemine
natural gas processing plant; the modification of the Riverside fractionator
facility; the construction of a 32 mile extension of LIG's Bayou Jack Lateral
that will provide gas services to customers in the Mississippi River corridor;
the installation of four pump stations totaling 13,400 horsepower and the
construction of 57 miles of NGL pipelines that will originate at the
Partnership's Eunice fractionator and connect to the new Plaquemine
fractionator.
The Partnership announced that it has entered into 10-year sales agreements
with Dow Hydrocarbons and Resources LLC. Under the sales agreements, the
Partnership will deliver up to 40,000 barrels per day of ethane and 25,000
barrels per day of propane produced at the Partnership's new Plaquemine
fractionator into Dow's Louisiana pipeline system. The Partnership will also
deliver 70,000 million British thermal units of natural gas per day to Dow's
Plaquemine facility.
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