Regency to Construct New Processing Facility, Pipeline

Regency Energy Partners LP (Dallas) will construct a new processing plant and NGL pipeline at its Dubberly facility in north Louisiana. The project will include the addition of a 200-MMcfd cryogenic processing plant, which will accept gas directly from Regency’s recently completed Dubberly gathering trunk line. The residue outlet for the facility will be the Regency Intrastate Gas System.

In addition, Regency will construct a new, 160-mile 8-in. and 10-in. NGL pipeline from Dubberly for delivery to fractionation facilities. The pipeline will have an initial capacity of 25,000 bbld, and will be expandable via additional pump stations. Combined project costs are expected to be about $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 by mid-2015.

“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.”

Regency is a growth-oriented limited master 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 LP.