Energy Transfer Partners, L.P. (NYSE: ETP) and Regency
Energy Partners LP (NYSE:RGP) today announced that
their joint venture, Lone Star NGL LLC (“Lone Star”), has Board of
Directors approval to construct a 533 mile, 24 and 30-inch natural gas
liquids (NGL) pipeline from the Permian Basin to Mont Belvieu, Texas,
and convert Lone Star’s existing West Texas 12-inch NGL pipeline into
crude oil/condensate service. The new pipeline and conversion projects,
estimated to cost between $1.5 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 Lone Star’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 while the 30-inch pipeline is
currently sized to transport 495,000 barrels per day from Bosque County
to Mont Belvieu, Texas. The pipelines can be easily expanded to
transport additional volumes in the future.
Lone Star’s 12-inch West Texas NGL pipeline will be converted to
crude/condensate service. The 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. Lone
Star plans on holding an open season for the crude/condensate service at
a future date.
Potential shippers interested in transportation service may contact Lone
Star via e-mail at M.Mckee@energytransfer.com
to request additional information.
Energy Transfer Partners, L.P. (NYSE: ETP) is a master limited
partnership owning and operating one of the largest and most diversified
portfolios of energy assets in the United States. ETP currently owns and
operates approximately 35,000 miles of natural gas and natural gas
liquids pipelines. ETP also owns 100% of Panhandle Eastern Pipe Line
Company, LP (the successor of Southern Union Company) and a 70% interest
in Lone Star NGL LLC, a joint venture that owns and operates natural gas
liquids storage, fractionation and transportation assets. ETP also owns
the general partner, 100% of the incentive distribution rights, and
approximately 67.1 million common units in Sunoco Logistics Partners
L.P. (NYSE: SXL), which operates a geographically diverse portfolio of
crude oil and refined products pipelines, terminalling and crude oil
acquisition and marketing assets. ETP owns 100% of Sunoco, Inc. and 100%
of Susser Holdings Corporation. Additionally ETP owns the general
partner, 100% of the incentive distribution rights and approximately 44%
of the limited partnership interests in Sunoco LP (formerly Susser
Petroleum Partners LP) (NYSE: SUN), a wholesale fuel distributor and
convenience store operator. ETP’s general partner is owned by ETE. For
more information, visit the Energy Transfer Partners, L.P. web site at www.energytransfer.com.
Regency Energy Partners LP (NYSE:RGP) is a growth-oriented,
master limited partnership engaged in the gathering and processing,
compression, treating and transportation of natural gas; the
transportation, fractionation and storage of natural gas liquids; the
gathering, transportation and terminaling of oil (crude and/or
condensate) received from producers; and the management of coal and
natural resource properties in the United States. Regency’s general
partner is owned by Energy Transfer Equity, L.P. (NYSE:ETE). For more
information, please visit Regency’s website at www.regencyenergy.com.
Forward-Looking Statements
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 management’s
control. An extensive list of factors that can affect future results are
discussed in the Partnerships’ Annual Reports on Form 10-K and other
documents filed from time to time with the Securities and Exchange
Commission. The Partnerships 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 Energy
Transfer Partners, L.P.’s website at www.energytransfer.com
and on the Regency Energy Partners LP website at www.regencyenergy.com.
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