Western Gas Partners, LP announced two new growth projects.

The Partnership announced that it has exercised an option to acquire a 25% at-cost interest in a joint venture with Enterprise Products Partners L.P. which will own two fractionation trains ('Trains 7 and 8') in Mont Belvieu, Texas that are currently under construction. Trains 7 and 8 will be operated by Enterprise Products Partners L.P. and are expected to be in service by the end of 2013. The Partnership's interest in the two fractionation trains will be recorded as an equity investment on its balance sheet, and the Partnership expects to invest approximately $120 million in 2013 to fund its pro-rata share of the construction costs.

The Partnership also announced that it would begin the construction of a second cryogenic processing train at its Lancaster plant in the DJ Basin ('Lancaster II') in 2013. Lancaster II is expected to have a capacity of 300 MMcf/d with throughput of 200 MMcf/d guaranteed by a subsidiary of Anadarko.

Tags: Western Gas Partners