Energy Transfer and Regency Energy to construct new NGL pipeline

Energy Transfer Partners, L.P. (ETP) and Regency Energy Partners LP (RGP) have announced that their joint venture, Lone Star NGL LLC, has Board of Directors approval to construct a 533 mile, 24 and 30 in. natural gas liquids (NGL) pipeline from the Permian Basin to Mont Belvieu, Texas, and convert Lone Star’s existing West Texas 12 in. NGL pipeline into crude oil/condensate service. The new pipeline and conversion projects, estimated to cost between US$ 1.5 and US$ 1.8 billion, are expected to be operational by Q3 2016 and Q1 2017, respectively.

The new pipeline is being built to accommodate Lone Star’s contracted NGL transportation volumes that will exceed Lone Star’s existing 290 000 bpd of capacity from the Permian Basin by 2016. The 24 in. pipeline will initially be sized to transport 375 000 bpd from the Permian Basin to Bosque County while the 30 in. pipeline is currently sized to transport 495 000 bpd from Bosque County to Mont Belvieu, Texas. The pipelines can be easily expanded to transport additional volumes in the future.

Lone Star’s 12 in. West Texas NGL pipeline will be converted to crude/condensate service. The pipeline runs from the Midland area to the Gulf Coast and will be sized to ship 70 000 bpd to Corsicana, Texas, and 100 000 bpd to Sour Lake, Texas. Lone Star plans on holding an open season for the crude/condensate service at a future date.

Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldpipelines.com/project-news/18112014/energy-transfer-partners-and-regency-energy-partners-to-construct-new-ngl-pipeline-1032/