Energy Transfer Partners & Regency Energy Partners Announce New NGL Pipeline Project from West Texas as Part of Its Lone Star...
June 22 2011 - 7:30AM
Business Wire
Energy Transfer Partners, L.P. (NYSE: ETP) and Regency
Energy Partners LP (NASDAQ: RGNC) today announced that
Lone Star NGL LLC (“Lone Star”) will construct an approximately
530-mile natural gas liquids (“NGL”) pipeline that extends from
Winkler County in west Texas to the Jackson County processing plant
in Jackson County, Texas. In addition, Lone Star has secured
capacity on ETP’s recently-announced NGL pipeline from Jackson
County to Mont Belvieu, Texas.
“The dramatic increase in drilling in the Permian Basin has
highlighted the need for additional NGL takeaway capacity from west
Texas, and Lone Star is strategically positioned to provide this
essential service to producers,” said Greg Bowles, Senior Vice
President of Lone Star. “We are excited to announce this project
and believe there will be additional opportunities for expansion of
Lone Star’s assets.”
Lone Star’s new pipeline will have a minimum capacity of
approximately 130,000 barrels per day with the potential to upsize
the pipeline capacity depending on ongoing negotiations. The
project currently has over 65 percent of the capacity subscribed
with key producers and processors under 15-year agreements, and is
expected to be completed by the first quarter of 2013. The
estimated cost of the project is $700 million, of which Energy
Transfer will pay 70 percent and Regency will pay 30 percent.
Lone Star NGL LLC (Lone Star), a joint venture between Energy
Transfer Partners, L.P. (NYSE: ETP) and Regency Energy Partners LP
(NASDAQ: RGNC), owns and operates natural gas liquids storage,
fractionation, and transportation assets in Texas, Louisiana, and
Mississippi. Lone Star’s assets include a 1,066-mile NGL pipeline
and 43 million barrels of storage capacity at Mont Belvieu, Texas.
ETP owns and operates a diversified portfolio of energy assets,
including more than 17,500 miles of natural gas pipelines and
related facilities that gather, treat, process, transport and store
natural gas. RGNC provides midstream natural gas and natural gas
liquids gathering and processing, contract compression, treating
and transportation through more than 5,250 miles of gas gathering
pipelines and related facilities. Energy Transfer Equity, L.P.
(NYSE: ETE) owns the general partner of both ETP and RGNC.
This press release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal law. Such forward-looking statements are subject
to a variety of known and unknown risks, uncertainties, and other
factors that are difficult to predict and many of which are beyond
managements’ control. An extensive list of factors that can affect
future results are discussed in ETP's and RGNC’s Annual Report on
Form 10-K and other documents filed from time to time with the
Securities and Exchange Commission. ETP and RGNC undertake no
obligation to update or revise any forward-looking statement to
reflect new information or events.
The information contained in this press release is available on
the Energy Transfer Partners, L.P. website at
www.energytransfer.com or on the Regency Energy Partners LP website
at www.regencyenergy.com.
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