Lone Star begins construction on third Mont Belvieu frac unit

Nov. 6, 2014
Lone Star NGL LLC, a joint venture of Energy Transfer Partners LP (70%) and Regency Energy Partners LP (30%), both of Dallas, has begun construction of a third 100,000-b/d NGL fractionation unit at Mont Belvieu, Tex.

Lone Star NGL LLC, a joint venture of Energy Transfer Partners LP (70%) and Regency Energy Partners LP (30%), both of Dallas, has begun construction of a third 100,000-b/d NGL fractionation unit at Mont Belvieu, Tex.

The fractionator is fully subscribed by multiple long-term contracts and is necessary, Lone Star said, to handle the increasing NGLs delivered via ETP’s and Lone Star’s raw-make pipelines that gather NGLs from Permian, Eagle Ford, and North Texas production.

Estimated by the companies to cost $420-430 million, the fractionator is to be in operation by December 2015.

In addition, Lone Star said it continues to evaluate additional fractionation expansions at Mont Belvieu and in other areas.

The fractionator will combine with two other, 100,000-b/d units. Lone Star placed in service Lone Star Frac II fractionator in November 2013 (OGJ Online, Nov. 4, 2013), with the Frac I unit previously completed in 2012 (OGJ, May 7, 2012, p. 88; June 6, 2011, p. 88).

Both fractionators receive NGLs from production from the Permian basin, Eagle Ford shale, and other producing regions via several sources, including Lone Star’s West Texas NGL pipelines and ETP’s Justice NGL pipeline (OGJ, June 2, 2014, p. 86).