Lone Star NGL LLC, the joint venture between Energy Transfer Partners LP and Regency Energy Partners LP, will construct a 533-mile, 24- and 30-inch diameter NGL pipeline from the Permian Basin to Mont Belvieu, Texas. The company will also convert its existing West Texas 12-inch NGL pipeline into crude oil/condensate service. The projects are estimated to cost between $1.5 billion and $1.8 billion, and to begin service by third-quarter 2016 and first-quarter 2017, respectively.
The new pipeline will accommodate Lone Star’s contracted NGL transportation volumes that will exceed the company’s current 290,000 barrels per day (bbl/d) of capacity from the Permian Basin by 2016. The 24-inch pipeline will have an initial capacity of 375,000 bbl/d from the Permian Basin to Bosque County while the 30-inch pipeline is currently sized to transport 495,000 bbl/d from Bosque County, Texas, to Mont Belvieu.
Lone Star’s West Texas NGL pipeline runs from the Midland area to the Gulf Coast and will be sized to ship 70,000 bbl/d of crude and condensate to Corsicana, Texas, and 100,000 bbl/d to Sour Lake, Texas. Lone Star plans on holding an open season for the crude/condensate service at a future date.
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