Christopher E. Smith
OGJ Pipeline Editor
HOUSTON, June 24 -- Lone Star NGL LLC, a joint venture of Energy Transfer Partners LP and Regency Energy Partners LP, will build a 530-mile NGL pipeline from Winkler County in West Texas to the Jackson County processing plant in Jackson County, Tex., moving Permian basin production eastward.
Lone Star has also secured capacity on ETP’s recently announced NGL pipeline from Jackson County to Mont Belvieu, Tex.
The new line will have a minimum capacity of 130,000 b/d, with the potential to upsize depending on commercial demand. The project currently has more than 65% of capacity subscribed under 15-year agreements.
Lone Star expects the pipeline to be completed by first-quarter 2013 at an estimated cost of $700 million, of which ETP will pay 70% and Regency 30%.
DCP Midstream is in the process of securing right-of-way for its 700-mile Sandhills Pipeline project to bring NGL from the Permian basin and South Texas to Gulf Coast fractionation facilities, including Mont Belvieu (OGJ Online, June 13, 2011).
Contact Christopher E. Smith at email@example.com.