Energy Transfer 2012 Annual Report Download - page 23

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Rich Eagle Ford Mainline System
• Approximately 220 miles of natural gas pipeline
• Two processing plants (Chisholm and Kenedy) with capacity of 325 MMcf/d
The Rich Eagle Ford Mainline gathering system consists of 30-inch and 42-inch natural gas transportation pipelines delivering
1.0 Bcf/d of capacity originating in Dimmitt County, Texas and extending to our Chisholm pipeline for ultimate deliveries to our
existing processing plants. Our Chisholm and Kenedy processing plants are connected to our intrastate transportation pipeline
systems for deliveries of residue gas and are also connected with our NGL pipelines for delivery of NGLs.
Other Midstream Assets
The midstream segment also includes our interests in various midstream assets located in Texas, New Mexico and Louisiana, with
gathering pipelines aggregating a combined capacity of approximately 115 MMcf/d, as well as one conditioning facility. We also
own gathering pipelines serving the Marcellus Shale in West Virginia with aggregate capacity of approximately 250 MMcf/d.
Marketing Operations
We conduct marketing operations in which we market the natural gas that flows through our gathering and intrastate transportation
assets, referred to as on-system gas. We also attract other customers by marketing volumes of natural gas that do not move through
our assets, referred to as off-system gas. For both on-system and off-system gas, we purchase natural gas from natural gas producers
and other suppliers and sell that natural gas to utilities, industrial consumers, other marketers and pipeline companies, thereby
generating gross margins based upon the difference between the purchase and resale prices of natural gas, less the costs of
transportation.
For the off-system gas, we purchase gas or act as an agent for small independent producers that may not have marketing operations.
We develop relationships with natural gas producers to facilitate the purchase of their production on a long-term basis. We believe
that this business provides us with strategic insight and market intelligence, which may positively impact our expansion and
acquisition strategy.
NGL Transportation and Services
The following details our assets in the NGL transportation and services segment. Certain assets described below are owned by
Lone Star, a joint venture with Regency in which we have a 70% interest.
West Texas System
• Capacity of 137,000 Bbls/d
• Approximately 1,170 miles of NGL transmission pipelines
The West Texas System, owned by Lone Star, is an intrastate NGL pipeline consisting of 3-inch to 16-inch long-haul, mixed
NGLs transportation pipeline that delivers 137,000 Bbls/d of capacity from the Regency Waha Processing Plant in the Permian
Basin and our Godley Processing Plant in the Barnett Shale to the Mont Belvieu NGL storage facility.
West Texas Gateway Pipeline
• Initial capacity of 209,000 Bbls/d
• Approximately 570 miles of NGL transmission pipeline
The West Texas Gateway Pipeline, owned by Lone Star, began service in December 2012 and transports NGLs produced in the
Permian and Delaware Basins in West Texas and the Eagle Ford Shale to Mont Belvieu, Texas.
Other NGL Pipelines
• Capacity ranging from 20,000 to 260,000 Bbls/d
• Approximately 279 miles of NGL transmission pipelines
Other NGL pipelines include the 126-mile Justice pipeline with capacity of 260,000 Bbls/d, the 87-mile Liberty pipeline with a
capacity of 90,000 Bbls/d, the 45-mile Freedom pipeline with a capacity of 40,000 Bbls/d and the 21-mile Spirit pipeline with a
capacity of 20,000 Bbls/d.
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