Energy Transfer to Expand Lone Star Express Pipeline, Add Fractionator

Energy Transfer's Lone Star NGL subsidiary will expand the Lone Star Express Pipeline with a new 352-mile pipeline from West Texas and construct another Gulf Coast fractionation facility to meet growing demand, the company said.

The projects will connect constrained production from the Delaware and Permian Basins to Lone Star's rapidly expanding Mont Belvieu complex, where its seventh fractionator will add 150,000 bpd of capacity.

The Lone Star Express Pipeline expansion will be a 24-inch pipeline that connects Lone Star's pipeline system with its 30-inch pipeline south of Fort Worth.  Energy Transfer said the expansion will provide capacity for "significant transportation commitments Lone Star has secured from the Delaware and Permian Basins." It is expected to be in service by the fourth quarter of 2020.

Lone Star Express Pipeline is a 532-mile interstate system consisting of 24-inch and 30-inch long-haul, mixed NGLs transportation pipeline that can deliver up to 507,000 Bbls/d of capacity from processing plants in the Permian Basin and Barnett Shale to Mont Belvieu NGL storage and fractionation facilities.

Lone Star's announced Fractionator VII is scheduled to be operational in the first quarter of 2020. Energy Transfer said its 150,000 bpd of capacity has already been fully subscribed by multiple long-term contracts and will provide "the much needed capacity required to supplement incremental fractionation demand in excess of volumes feeding Fractionators I through VI."

Lone Star’s fifth fractionator was placed in service in July 2018 and is operating at full capacity. Its sixth Mont Belvieu fractionator is currently under construction and is expected to be in service during the first quarter of 2019, ahead of schedule. Fractionator VI is also fully contracted with long-term commitments and will have a capacity of 150,000 barrels per day, the company said.

With the completion of Fractionators VI and VII, Lone Star said it will be capable of fractionating over 900,000 bd at Mont Belvieu supported by long-term fee-based agreements.


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