Joint venture to build 530-mile pipeline in the works

August 2011, Vol. 66 No. 8

Energy Transfer Partners and Regency Energy Partners will spend $700 million in a joint venture to build a 530-mile pipeline to carry natural gas liquids from Winkler County in West Texas to a processing plant in Jackson County, east of Victoria.

The joint venture, Lone Star NGL, expects to complete the 130,000 barrel-per-day pipeline by the first quarter of 2013.

So far, Lone Star has received customer commitments for more than 65 percent of the capacity, the companies said.

Energy Transfer will pay for 70 percent of the project's cost, with Regency picking up the rest.

Lone Star said it also has secured capacity on Energy Transfer's recently announced natural gas liquids pipeline from Jackson County to Mont Belvieu.