Energy Transfer Partners LP and Regency Energy Partners LP, both of Dallas, reported that their joint venture, Lone Star NGL LLC, has received board approval to construct a 533-mile, 24- and 30-in. natural gas liquids pipeline from the Permian basin to Mont Belvieu, Tex.
Separately, the JV also plans to convert Lone Star’s existing West Texas 12-in. NGL pipeline into crude oil-condensate service.
The pipeline construction and conversion projects—estimated to cost $1.5-1.8 billion—are expected to be operational by third-quarter 2016 and first-quarter 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 b/d of capacity from the Permian basin by 2016. The 24-in. line will initially be sized to transport 375,000 b/d from the Permian basin to Bosque County while the 30-in. line is currently sized to transport 495,000 b/d from Bosque County to Mont Belvieu. The pipelines can be easily expanded to transport additional volumes in the future, the partners said.
Lone Star’s existing 12-in. West Texas NGL pipeline extends from the Midland area to the Gulf Coast and will be sized to ship 70,000 b/d to Corsicana, Tex., and 100,000 b/d to Sour Lake, Tex. Lone Star plans to hold an open season for the crude-condensate service at a future date.