Energy Transfer Partners, L.P. (NYSE: ETP) and Regency Energy Partners LP (NYSE: RGP) announced today that the Lone Star West Texas Gateway NGL Pipeline is now in service. The 570-mile, 16-inch pipeline owned by Lone Star NGL LLC, a joint venture between the two partnerships, transports natural gas liquids (NGLs) produced in the Permian and Delaware Basins in West Texas to Mont Belvieu, Texas. The West Texas Gateway was originally scheduled to be completed in the first quarter of 2013.
The West Texas Gateway NGL Pipeline, which extends from Winkler County in West Texas to ETP’s Jackson County processing plant in Jackson County, Texas, has an initial capacity of approximately 209,000 barrels per day with the potential to increase capacity.
"The West Texas Gateway is critical in supporting the rapid increase in the production of natural gas liquids in the Permian Basin and Delaware Basin as well as throughout the Eagle Ford Shale, where additional NGL takeaway capacity is in high demand,” said Steve Spaulding, Executive Vice President of Lone Star NGL. “Furthermore, 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."
ETP also announced today that its 130-mile Justice NGL Pipeline, extending from the Jackson County processing facility to Mont Belvieu, is also in service. Lone Star has secured capacity on ETP's Justice NGL pipeline for ultimate delivery of NGLs to Lone Star’s storage and fractionation facilities at Mont Belvieu. Lone Star’s previously announced Fractionator I is scheduled to be completed this year, and Fractionator II in the fourth quarter of 2013.