Regency Energy Partners LP (NYSE:
RGP), (“Regency” or the “Partnership”), announced today it will
construct a new processing plant and NGL pipeline at Regency’s Dubberly
facility in North Louisiana.
The project will include the addition of a new 200 MMcf/d cryogenic
processing plant at the existing Dubberly facility, which will accept
gas directly from Regency’s recently completed Dubberly gathering
trunkline. The residue outlet for this facility will be the Regency
Intrastate Gas System (“RIGS”). In addition, Regency will construct a
new, 160-mile, 8 and 10 inch NGL pipeline from Dubberly for delivery to
fractionation facilities. The pipeline will have an initial capacity of
25,000 Bbls/d, and will be expandable via additional pump stations.
“Strong drilling around our facilities in the richer Cotton Valley play
is driving significant volume growth,” said Jim Holotik, executive vice
president and chief commercial officer of Regency. “This expansion will
allow us to provide incremental processing solutions and create an
alternative outlet for newly-produced NGLs from the region.”
Combined project costs are expected to be approximately $260 million and
both the new processing facility and the NGL pipeline are backed by
fee-based contracts. The projects are expected to be completed in
mid-2015.
Regency is a growth-oriented master limited partnership engaged in
natural gas gathering and processing, transportation, contract
compression and treating, crude oil gathering, water gathering and
disposal, natural resource management, and natural gas liquids
transportation, fractionation and storage. Regency’s general partner is
owned by Energy Transfer Equity, L.P. (NYSE: ETE).
FORWARD-LOOKING INFORMATION
This release includes “forward-looking” statements. Forward-looking
statements are identified as any statement that does not relate strictly
to historical or current facts. Statements using words such as
“anticipate,” “believe,” “intend,” “project,” “plan,” “expect,”
“continue,” “estimate,” “goal,” “forecast,” “may” or similar expressions
help identify forward-looking statements. Although Regency believes our
forward-looking statements are based on reasonable assumptions and
current expectations and projections about future events, Regency cannot
give any assurance that such expectations will prove to be correct.
Forward-looking statements are subject to a variety of risks,
uncertainties and assumptions. Additional risks include: volatility in
the price of oil, natural gas, and natural gas liquids, declines in the
credit markets and the availability of credit for Regency as well as for
producers connected to Regency’s system and its customers, the level of
creditworthiness of, and performance by Regency’s counterparties and
customers, Regency’s ability to access capital to fund organic growth
projects and acquisitions, and Regency’s ability to obtain debt and
equity financing on satisfactory terms, Regency’s use of derivative
financial instruments to hedge commodity and interest rate risks, the
amount of collateral required to be posted from time-to-time in
Regency’s transactions, changes in commodity prices, interest rates, and
demand for Regency’s services, changes in laws and regulations impacting
the midstream sector of the natural gas industry, weather and other
natural phenomena, industry changes including the impact of
consolidations and changes in competition, Regency’s ability to obtain
required approvals for construction or modernization of Regency’s
facilities and the timing of production from such facilities, and the
effect of accounting pronouncements issued periodically by accounting
standard setting boards. Therefore, actual results and outcomes may
differ materially from those expressed in such forward-looking
statements.
These and other risks and uncertainties are discussed in more detail in
filings made by Regency with the SEC, which are available to the public.
Regency undertakes no obligation to update publicly or to revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Copyright Business Wire 2014