Lone Star NGL LLC, a subsidiary of Energy Transfer Partners L.P. (NYSE: ETP) will construct a $385 million NGL fractionation facility, its fifth at Mont Belvieu, Texas.
Fractionator V will include a new 3 million barrel y-grade storage cavern and a capacity of 120,000 barrels per day (Mbbl/d). It is fully subscribed under multiple long-term, fixed-fee contracts and is scheduled to be operational by September 2018.
The decision to build Fractionator V results from tremendous production growth in the Delaware and Permian Basins. When complete, Lone Star will own and operate over 540 MMbbl/d of fractionating capacity at Mont Belvieu.
With the addition of the Lone Star Express Pipeline, which was placed in service in August 2016, Lone Star has about 585 MMbbl/d of NGL transport capacity out of West Texas and southeastern New Mexico and 880 MMbbl/d of total capacity into Mont Belvieu.
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