Dec 4 Energy Transfer Partners and Regency Energy Partners have completed a joint-venture pipeline project to take natural gas liquids from booming west Texas to the Mont Belvieu gathering hub in the east of the state, the companies said on Tuesday.
The 16-inch Lone Star West Texas Gateway NGL Pipeline, with an initial capacity of 209,000 barrels per day (bpd), will carry natural gas liquids from the Perminan and Delaware basin to a processing plant in Jackson County, according to a statement.
From Jackson County, NGLs will be transported in Energy Transfer's newly completed Justice NGL Pipeline to storage and fractionation facilities owned by the Lone Star joint venture in Mont Belvieu. The first fractionator at the facility will be completed in 2012, while a second fractionator will come online in the fourth quarter of 2013.
Production of NGLs has jumped with the rise of the Eagle Ford shale oil and natural gas play, which has boosted the state's production rapidly and helped redefine the U.S. energy landscape. The Lone Star partnership said the pipeline could be expanded further as output in the region grows.
"We believe there will be additional need for more NGL services in the near future and our West Texas Gateway Pipeline strategically positions us to quickly and efficiently leverage expansion opportunities," said Steve Spaulding, executive vice president of Lone Star NGL.