Energy Transfer, Regency to build 530-mile NGL pipeline in Texas
Energy Transfer and Regency Energy will construct an approximately 530-mile natural gas liquids (NGL) pipeline in Texas through their Lone Star NGL joint venture.
The pipeline will extend from Winkler County in West Texas to the Jackson County processing plant in Jackson County, Texas, the companies said.
In addition, Lone Star has secured capacity on ETP’s recently-announced NGL pipeline from Jackson County to Mont Belvieu, Texas, it said.
“The dramatic increase in drilling in the Permian Basin has highlighted the need for additional NGL takeaway capacity from West Texas, and Lone Star is strategically positioned to provide this essential service to producers,” said Greg Bowles, senior vice president of Lone Star.
“We are excited to announce this project and believe there will be additional opportunities for expansion of Lone Star’s assets.”
Lone Star’s new pipeline will have a minimum capacity of 130,000 bpd with the potential to upsize the pipeline capacity depending on ongoing negotiations.
The project currently has over 65 % of the capacity subscribed with key producers and processors under 15-year agreements, and is expected to be completed by the first quarter of 2013.
The estimated cost of the project is $700 million, of which Energy Transfer will pay 70% and Regency will pay 30%.
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