Copano Energy, a Houston-based midstream company, and Energy Transfer Partners have formed a joint venture and agreed to spend a combined $52m to construct an 83-mile pipeline to deliver Copano's natural-gas liquids to Formosa Hydrocarbons, a Texas-based refiner.
Earlier, Copano has entered into a long-term fractionation and product sales agreement with Formosa Hydrocarbons Company.
These agreements are in line with the company’s strategy to increase Copano’s capability to handle natural gas liquids (NGLs) associated with growing natural gas volumes from the Eagle Ford Shale.
The Liberty Pipeline will extend from Copano’s Houston Central Complex in Colorado County, Texas, first to Formosa’s leased NGL product storage facility in Matagorda County, Texas and then to Formosa’s petrochemical facility in Calhoun County, Texas.
As per the 15-year agreement, Formosa Hydrocarbons will provide fractionation and product-storage services
The Liberty Pipeline, which will have initial capacity of 75,000 barrels per day, is expected to be completed by the summer of 2011.
Liberty Pipeline will be committed to Copano and Energy Transfer (50% each) under firm throughput agreements.