Lone Star NGL to construct fractionation facility at Mont Belvieu

August 9, 2011 By    

Lone Star NGL LLC, a joint venture between Energy Transfer Partners L.P. (ETP) and Regency Energy Partners LP, will construct a 100,000-barrels-per-day natural gas liquids (NGL) fractionation facility at Mont Belvieu, Texas. ETP will utilize a substantial amount of this fractionation capacity to handle NGL barrels it will deliver from its Jackson County, Texas, processing plant, which is supported by multiple 10-year contracts with producers as part of ETP’s Eagle Ford Shale projects. Regency also expects to provide barrels to the project. Lone Star expects to have the fractionation facilities completed by the first quarter of 2013 at an estimated cost of between $350 and $375 million. Lone Star also is planning to build a $700 million, 530-mile pipeline to carry natural gas liquids from West Texas to the Gulf Coast. The pipeline will have a minimum capacity of 130,000 barrels per day, and its completion is expected by the first quarter of 2013.

Kevin Yanik

About the Author:

Kevin Yanik is the senior editor of LP Gas Magazine. Contact him at kyanik@northcoastmedia.net or 216-706-3724.

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