Sept 18 (Reuters) -

Energy Transfer ( ET ) said a fire at its natural gas liquid

(NGL) pipeline in La Porte, Texas, which started on Monday,

continued to safely burn itself out on Wednesday with the flame

having diminished overnight.

The pipeline was isolated for residual product to burn off,

after a massive fire knocked out power to thousands of homes and

businesses and prompted an evacuation of the area.

"When isolation equipment is installed, we will purge a

short section with nitrogen, which will extinguish the fire, and

begin repairs," the company said.

The fire started after a car crashed into an above-ground

pipeline valve, and it is suspected to involve the Justice

pipeline, a 20-inch Y-grade line that connects with Energy

Transfer's ( ET ) Liberty and West Texas Gateway pipelines, researchers

for investment firm Tudor, Pickering, Holt & Co said in a note.

Energy Transfer ( ET ) has not confirmed the name or capacity

of the pipeline that ruptured and was not available immediately

to confirm the details.

Y-grade refers to a mix of NGLs, including ethane,

propane, butane, isobutane, and natural gasoline, which are

extracted from the raw natural gas stream. Propane, butane, and

isobutane are also called liquefied petroleum gas (LPG) and are

mainly used as fuel for cars, cooking, heating and to produce

other petrochemicals.

The Justice pipeline, which entered service in 2012 with

a capacity of 375,000 barrels per day, carries Y-grade from the

Permian and Eagle Ford shale fields to Energy Transfer's ( ET ) Mont

Belvieu fractionators.

"ET will likely be able to utilize its vast network,

including its storage assets and Lone Star NGL line, to absorb

the service disruption. News of the event sent LPG prices

higher, with propane and butane up 7% and 10% since Friday's

close" the research note added.