Dallas-based Crosstex Energy L.P. will spend $16 million to triple its capacity to transfer crude oil from rail cars to barges and pipelines at the company’s Riverside fractionation facility in the St. Gabriel area.
Crosstex will boost its daily capacity to 14,500 barrels of oil from 4,500 barrels under its Phase II expansion project. Crosstex will add new storage tanks, upgrade pipeline connections and improve barge delivery at the facility on the Mississippi River. The company expects to complete the project during the first quarter of 2013.
“We continue to execute on our growth strategy by expanding and upgrading our existing assets to take advantage of crude opportunities,” Crosstex President and Chief Executive Officer Barry E. Davis said in a news release. “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.”
Crosstex estimates the current project and a recently completed expansion will generate around $10 million a year in revenue on average.