Copano, a midstream firm based in Houston, signed a long-term fractionation and product sales arrangement with Formosa Hydrocarbons covering distributions of combined NGLs to Formosa. The offer provides Copano with as much as 37,500 barrels/day of firm fractionation solutions for 15 years, starting in the very first quarter of 2013.
The bargain provides that Formosa will certainly purchase the resulting NGL product and make item storage space readily available to Copano.
Copano also said it had actually created a 50/50 joint venture with Power Transfer Companions to develop, possess as well as run an 83-mile, 12-inch-diameter NGL pipe extending from Copano's Houston Central complicated in Colorado County, Texas, to Formosa's leased NGL product storage center in Matagorda Region, as well as to Formosa's petrochemical facility in Calhoun Area.
Copano and also Energy Transfer Companions will with each other invest about $52 million in the intended Liberty Pipe and associated centers, Copano said.
iro oil drilling chemical co., ltd. is anticipated to have initial ability of 75,000 b/d, which will certainly be dedicated to Copano and Power Transfer Companions, 50% each, under firm throughput arrangements.
Following the conclusion of Liberty Pipeline, which is anticipated by the summer, and also until additional facility renovations at Formosa are complete, Copano will have accessibility to a minimum of 5,000 b/d of existing Formosa fractionation ability, and added ability on a "area offered" basis.
" The Formosa agreement and also Liberty Pipeline, together with our various other recently announced tasks, are very important steps in executing Copano's overall Eagle Ford Shale strategy as well as will raise our overall NGL taking care of capacity to over 80,000 barrels per day," claimed Bruce Northcutt, president as well as Chief Executive Officer of Copano. "These growths supply an added market for NGLs removed at our Houston Central Facility and also aid sustain Formosa's fractionation, storage space, as well as olefins production procedures."