Regency to build new gas processing plant, NGL pipeline in Louisiana

Regency Energy Partners announced Wednesday that it will construct a new processing plant and NGL pipeline at Regency’s Dubberly facility in North Louisiana.

The project will include the addition of a new 200 MMcf/d cryogenic processing plant at the existing Dubberly facility, which will accept gas directly from Regency’s recently completed Dubberly gathering trunkline.

In addition, Regency will construct a new, 160-mile, 8- and 10-inch NGL pipeline from Dubberly for delivery to fractionation facilities. The pipeline will have an initial capacity of 25,000 bpd, and will be expandable via additional pump stations.

“Strong drilling around our facilities in the richer Cotton Valley play is driving significant volume growth,” said Jim Holotik, executive vice president and chief commercial officer of Regency. “This expansion will allow us to provide incremental processing solutions and create an alternative outlet for newly-produced NGLs from the region.”

Combined project costs are expected to be approximately $260 million, and both the new processing facility and the NGL pipeline are backed by fee-based contracts.

The projects are expected to be completed in mid-2015.