ETP, Regency plan Permian-to-Mont Belvieu NGL pipeline

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.

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.

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