Lone Star JV to construct NGL pipeline from Permian Basin to Mont Belvieu

Energy Transfer Partners LP and Regency Energy Partners LP

Energy Transfer Partners LP (NYSE: ETP) and Regency Energy Partners LP (NYSE:RGP) report that their joint venture, Lone Star NGL LLC, will construct a 533-mile, 24-inch and 30-inch natural gas liquids (NGL) pipeline from the Permian Basin to Mont Belvieu, Texas, and convert Lone Star’s existing West Texas 12-inch NGL pipeline into crude oil/condensate service.

The new pipeline is being built to accommodate Lone Star’s contracted NGL transportation volumes that will exceed Lone Star’s existing 290,000 barrels per day of capacity from the Permian Basin by 2016. The 24-inch pipeline will initially be sized to transport 375,000 barrels per day from the Permian Basin to Bosque County, while the 30-inch pipeline is currently sized to transport 495,000 barrels per day from Bosque County to Mont Belvieu, Texas. The pipelines can be easily expanded to transport additional volumes in the future.

Lone Star’s 12-inch West Texas NGL pipeline will be converted to crude/condensate service. The pipeline runs from the Midland, Texas, area to the Gulf Coast and will be sized to ship 70,000 barrels per day to Corsicana, Texas, and 100,000 barrels per day to Sour Lake, Texas. Lone Star plans on holding an open season for the crude/condensate service at a future date.

The new pipeline and conversion projects, estimated to cost between $1.5 and $1.8 billion, are expected to be operational by the third quarter of 2016 and first quarter of 2017, respectively.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...