The new facility will be attached to the current Dubberly plant and will house a 200 million cubic-feet-per-day cryogenic processing plant, which will receive gas directly from Regency's trunkline. The residue outlet for the facility will be the Regency Intrastate Gas System.
The company is also building 160 miles of 8-inch and 10-inch NGL pipeline from Dubberly to other fractionation facilities. The pipelines initial capacity will be 25,000 barrels per day but can be expanded through other pump stations in the future.
"This expansion will allow us to provide incremental processing solutions and create an alternative outlet for newly-produced NGLs from the region," Jim Holotik, executive vice president of Regency, said.
The processing plant and additional pipeline are in response to an increase in volume from the Cotton Valley, according to the company's statement. Regency expects the construction to be finished by the middle of 2015.