Energy Transfer Forms a JV to Set Up Ethane Export Facility

Energy Transfer Forms a JV to Set Up Ethane Export Facility

Energy Transfer Partners, L.P. ETP is set to team up with Satellite Petrochemical USA Corporation for the construction of ethane export facility on the U.S. Gulf Coast. The joint venture (JV) will be named ‘Orbit Gulf Coast NGL Exports’ and aid in the supply of ethane to Satellite Petrochemical for its cracking facilities in Jiangsu province. The new facility will construct a refrigerated ethane tank with storage capacity of 800,000 barrels and 175,000 barrel per day ethane refrigeration facility.

The JV will also work toward the construction of a 20-inch ethane pipeline that will originate from Energy Transfer Partner’s Mont Belvieu Fractionators and will make deliveries to the export terminal and other domestic markets in the region. Per the agreement, Energy Transfer Partners will also provide necessary storage and marketing facilities to Satellite Petrochemical.  Additionally, Satellite will receive 150,000 barrels per day of ethane under a long term demand-based contract.

Energy Transfer Partners will act as the chief operator of the JV. The export terminal is anticipated to become functional by the fourth quarter of 2020.

Zacks Rank and Key Picks

Energy Transfer Partners is one of the largest master limited partnerships, having one of the most diversified portfolios of energy assets in the United States. The partnership is present in all the major production basins in the United States. It is headquartered in Dallas, TX. Energy Transfer Partners has a Zacks Rank #3 (Hold). You can see  the complete list of today’s Zacks #1 Rank stocks here .

Energy Transfer Partners, L.P. Price

Energy Transfer Partners, L.P. Price | Energy Transfer Partners, L.P. Quote

A few better-ranked players in the energy space include Concho Resources Inc. CXO , Pioneer Natural Resources Company RXD and Continental Resources, Inc. CLR , each sporting a Zacks Rank #1 (Strong Buy).

Concho Resources topped earnings estimates in each of the last four quarters, with an average of 48.89%.

Pioneer Natural surpassed earnings estimates in each of the trailing four quarters, with an average of 66.92%.

Continental Resources delivered an average positive earnings surprise of 64.93% in the preceding four quarters.

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