May 8, 2012 [Crosstex Energy, L.P.] - Crosstex Energy, L.P. and Crosstex Energy, Inc. announced today that the Partnership is increasing its capacity to transload crude oil from rail cars to both barges and pipelines at its Riverside fractionation facility in southern Louisiana from approximately 4,500 barrels of crude oil per day to approximately 14,500 barrels of crude per day.
Construction of the Phase II expansion project at Riverside, located on the Mississippi River, will be operational in the first quarter of 2013. The Partnership has entered into a long-term supply agreement which fully underwrites the expansion.
The Phase II development at Riverside will include new storage tank facilities, upgraded pipeline connections and improved barge delivery capabilities on the Mississippi River. The Phase I modification of the Riverside facility, which allowed crude as well as natural gas liquids (NGL) to be transloaded from rail to barge, has been in operation since January 2012. The expansion project is expected to cost approximately $16 million. The average annual cash flow from Phases I and II is estimated to be approximately $10 million.
“We continue to execute on our growth strategy by expanding and upgrading our existing assets to take advantage of crude opportunities,” said Barry E. Davis, Crosstex President and Chief Executive Officer. “We are in an ideal physical location to take advantage of premium markets in southern Louisiana and growing domestic crude supply. This represents substantial fee-based margin for us, and we’re continuing to evaluate additional projects that would develop this business further.”
