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Analyzing ETE and ETP’s 2Q17 Earnings

PART:
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Part 3
Analyzing ETE and ETP’s 2Q17 Earnings PART 3 OF 6

Energy Transfer Partners’ Expansion Projects: Key Updates

Rover pipeline

Energy Transfer Partners (ETP) provided updates on its organic projects during the 2Q17 earnings call. In this article, we’ll discuss updates on its key projects. Let’s start with the Rover Pipeline.

According to the 2Q17 earnings call, phase 1 of the Rover Pipeline project has been substantially completed. Phases 1a and 1b are expected to come online immediately after receiving the approval from FERC (the Federal Energy Regulatory Commission). FERC had halted new HDDs (horizontal directional drilling) on the Rover project site after a spill of drilling fluid near the project site. The partnership expects to bring online phase 2 of the project by the end of November or beginning of December, assuming approvals from FERC.

Energy Transfer Partners’ Expansion Projects: Key Updates

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The partnership recently announced a 32.4% stake sale in the project to Blackstone for $1.57 billion. For details, read Analyzing ETP’s Stake Sale in the Rover Pipeline Project.

Bayou Bridge

ETP expects to bring online phase 2 of the Bayou Bridge, which is a 24-inch segment between Lake Charles and St. James, in the first quarter of 2018. Phase 1 of the project was placed into service in April 2016. According to the 2Q17 earnings call, the partnership transported 118,000 bpd (barrels per day) of crude oil on the 30-inch segment from Nederland to Lake Charles during the second quarter.

Mariner East 2

The Mariner East 2, which is the second phase of the Mariner East project, was expected to come online in the second quarter of 2017. The project got delayed due to blockade from the Pennsylvania Environmental Board. The partnership is working with the board to resume HDDs in Pennsylvania. “Over the last several days, the hearing board has authorized ME2 to proceed with 16 drill locations. We’re working for approval to complete the remaining drills,” as noted in the 2Q17 earnings call. The Mariner East 2 should expand the partnership’s NGLs (natural gas liquids) takeaway capacity to 345,000 bpd from the Marcellus and Utica Shale regions to the Marcus Hook Industrial Complex.

We’ll discuss ETP’s spending plans for the rest of 2017 later in this series. In the next part, we’ll look at Energy Transfer Equity’s (ETE) and ETP’s price forecasts.

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