Copano Energy, L.L.C. has executed agreements increasing the company’s capability to handle natural gas liquids (NGLs) associated with growing natural gas volumes from the Eagle Ford Shale.
Copano has entered into a long-term fractionation and product sales agreement with Formosa Hydrocarbons Company, Inc. and, to facilitate deliveries of mixed NGLs to Formosa, Copano has formed a 50/50 joint venture with a subsidiary of Energy Transfer Partners to construct, own and operate the 12-inch NGL Liberty Pipeline.
The planned pipeline will extend approximately 83 miles, from Copano’s Houston Central Complex in Colorado County, TX, first to Formosa’s leased NGL product storage facility in Matagorda County, TX and then to Formosa’s petrochemical facility in Calhoun County, TX.
Liberty Pipeline will have initial capacity of 75,000 bpd, which will be committed to Copano and Energy Transfer (50% each) under firm throughput agreements. Copano and Energy Transfer will together invest approximately $52 million for the pipeline and related facilities.