Energy Transfer Partners Announces Long-Term Agreement with XTO Energy to Provide Gathering and Processing Services in the Permian Basin
Energy Transfer to Construct Cryogenic Processing Plant and Gathering System
DALLAS--(BUSINESS WIRE)--Energy Transfer Partners, L.P. (NYSE:ETP) announced today it has entered into a long-term agreement with XTO Energy Inc., a subsidiary of Exxon Mobil Corporation, to provide midstream services for natural gas produced from certain XTO wells in the Permian Basin.
ETP will construct a 130 million cubic feet per day cryogenic processing plant in Glasscock County, Texas with expansion capability to 200 million cubic feet per day and will build over 100 miles of high pressure and low pressure gathering pipelines connecting to the plant. The new plant and gathering lines are expected to be in service in the third quarter of 2014.
The construction of these new midstream assets in the Permian Basin will expand ETP’s strategic initiative to provide a full breadth of midstream services in one of the most active liquids-rich plays in the country. The project also provides additional revenue opportunities downstream of the plant, with connectivity to assets held by ETP. These assets include the Energy Transfer Fuel gas transmission system, and the Lone Star NGL pipeline system, which will deliver the NGL barrels to Lone Star’s fractionating facilities at Mont Belvieu.
Energy Transfer Partners, L.P. (NYSE: ETP) is a master limited partnership owning and operating one of the largest and most diversified portfolios of energy assets in the United States. ETP currently owns and operates approximately 35,000 miles of natural gas and natural gas liquids pipelines. ETP owns 100% of Panhandle Eastern Pipe Line Company, LP (the successor of Southern Union Company) and Sunoco, Inc., and a 70% interest in Lone Star NGL LLC, a joint venture that owns and operates natural gas liquids storage, fractionation and transportation assets. ETP also owns the general partner, 100% of the incentive distribution rights, and approximately 33.5 million common units in Sunoco Logistics Partners L.P. (NYSE: SXL), which operates a geographically diverse portfolio of crude oil and refined products pipelines, terminalling and crude oil acquisition and marketing assets. ETP’s general partner is owned by ETE. For more information, visit the Energy Transfer Partners, L.P. web site at www.energytransfer.com.
This press release may include certain statements concerning expectations for the future that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management’s control. An extensive list of factors that can affect future results are discussed in ETP’s Annual Report on Form 10-K for the year ended December 31, 2012 and other documents filed from time to time with the Securities and Exchange Commission. ETP undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.