|ENTERPRISE PRODUCTS PARTNERS L P filed this Form 10-K on 02/28/2018|
The following table summarizes the estimated reduction in our total gross operating margin by business segment due to the effects of Hurricane Harvey in 2017 (dollars in millions):
As a result of our deductible levels, we do not expect any reimbursement from insurance in connection with property damage or business interruption claims from Hurricane Harvey.
NGL Pipelines & Services
The following table presents segment gross operating margin and selected volumetric data for the NGL Pipelines & Services segment for the years indicated (dollars in millions, volumes as noted):
Natural gas processing and related NGL marketing activities
Comparison of 2017 with 2016. Gross operating margin from natural gas processing and related NGL marketing activities for 2017 increased a net $64.6 million when compared to 2016.
Gross operating margin from our natural gas processing plants in Louisiana and Mississippi increased a combined $54.1 million year-to-year primarily due to lower operating expenses, which accounted for $19.4 million of the increase, and the receipt of $19.1 million of business interruption insurance proceeds in connection with the fire and resulting downtime at our Pascagoula facility in June 2016. The facility was repaired and placed back into commercial service in December 2016. Gross operating margin also increased $9.8 million primarily due to higher average processing margins. Fee-based processing volumes for our Louisiana and Mississippi plants increased a combined 138 MMcf/d year-to-year.
Gross operating margin from our Meeker, Pioneer and Chaco natural gas processing plants increased a net $31.5 million year-to-year primarily due to higher average processing margins (including the impact of hedging activities), which accounted for $41.9 million of the increase, partially offset by lower average processing fees, which accounted for a $7.3 million decrease. On a combined basis for these three plants, fee-based natural gas processing volumes and equity NGL production decreased 61 MMcf/d and increased 16 MBPD, respectively, year-to-year.
Gross operating margin from our NGL marketing activities decreased a net $10.4 million year-to-year primarily due to lower average sales margins, which accounted for a $37.9 million decrease, partially offset by higher sales volumes, which accounted for a $20.1 million increase, and lower operating costs, which accounted for an additional $7.4 million increase. Results from NGL marketing’s activities decreased $11.4 million year-to-year due to non-cash mark-to-market activity.