Lone Star NGL, LLC, a partnership of Energy Transfer Partners, LP, and Regency Energy Partners, L.P., plan to construct a 533-mile, 24- and 30-inch natural gas liquids (NGL) pipeline from the Permian Basin to Mont Belvieu, Texas. In addition, Lone Star will convert the existing 12-inch West Texas NGL pipeline into crude oil/condensate service. The new pipeline and conversion projects, estimated to cost between $1.5 billion and $1.8 billion, are expected to be operational by third quarter of 2016 and first quarter of 2017, respectively.
The new pipeline is being built to accommodate Lone Star’s contracted NGL transportation volumes that will exceed the partnership’s existing 290,000 barrels per day of capacity from the Permian Basin by 2016. The 24-inch pipeline will initially be sized to transport 375,000 barrels per day from the Permian Basin to Bosque County, Texas, while the 30-inch pipeline is currently sized to transport 495,000 barrels per day from Bosque County to Mont Belvieu, Texas.
Lone Star’s West Texas NGL pipeline runs from the Midland area to the Gulf Coast and will be sized to ship 70,000 barrels per day to Corsicana, Texas, and 100,000 barrels per day to Sour Lake, Texas.
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