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.