Regency Energy Partners 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 200MMcfd 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” NGL pipeline from Dubberly for delivery to fractionation facilities. The pipeline will have an initial capacity of 25,000Bbls/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 USD 260M 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.