Regency Energy Partners will build a new processing plant and NGL pipeline at its Dubberly facility in North Louisiana, US.
Addition of a new 200 MMcf/d cryogenic processing plant at the existing Dubberly facility is considered for the project.
Dubberly facility will accept gas directly from Regency’s recently completed Dubberly gathering trunkline.
The company will also contract a new, 160-mile, 8 and 10 inch NGL pipeline from Dubberly for delivery to fractionation facilities.
The pipeline, which will have an initial capacity of 25,000 Bbls/d, will be expandable through further pump stations.
Regency executive vice president and chief commercial officer Jim Holotik said that strong drilling around the facilities in the Cotton Valley play is driving significant volume growth.
"This expansion will allow us to provide incremental processing solutions and create an alternative outlet for newly-produced NGLs from the region," Holotik added.
The two projects, which have a combined value of approximately $260m, are scheduled to be completed in mid-2015.