EnLink Midstream Partners LP and EnLink Midstream LLC announced two new growth projects in the Permian Basin and south Louisiana, the companies said in a statement.
The partnership plans to build a new natural gas processing plant and expand its rich gas gathering system in the Permian Basin. The project is estimated to cost more than$200 million, increasing the partnership’s total invested capital in the basin to more than $400 million. The new plant’s design is for a processing capacity of 120 million cubic feet per day (MMcf/d). It will be located near the company’s existing midstream assets and will offer additional processing capacity to producer customers in the area, including Devon Energy. Construction on the plant is expected to be complete in the second-half of 2015, at which time the company’s processing capacity in the region will be about 240 MMcf/d.
The partnership also entered a series of agreements with Marathon Petroleum Corp.’s subsidiary MPL Investment LLC, to create a 50/50 joint venture called Ascension Pipeline Co. LLC. The joint venture plans to build a new 30-mile NGL pipeline to connect EnLink Midstream Partners’ Riverside fractionation and terminal complex to Marathon’s Garyville refinery on the Mississippi River. The project is supported by long-term, fee-based contracts with Marathon. Under the agreements, the partnership will serve as construction manager and operator for the pipeline project, which is expected to be complete in the first-half of 2017.
In a separate statement, the companies reported results for second-quarter 2014. EnLink Midstream Partners realized adjusted EBITDA of $111.6 million, distributable cash flow of $93.8 million and net income of $41.4 million for the quarter. Its gross operating margin was $262.1 million and operating income was $93.1 million.
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