Regency plans $260 million pipeline, processing plant in north La.

Dallas-based Regency Energy Partners LP announced Wednesday it will build a new, $260 million natural gas processing plant and natural gas liquids pipeline at its Dubberly facility in north Louisiana.

The project includes a 200 million cubic-feet-per-day processing plant, which will connect to Regency’s recently completed Dubberly gathering trunkline. In addition, Regency will also build a new, 160-mile, 8- and 10-inch natural gas liquids pipeline from Dubberly for delivery to fractionation facilities. The pipeline will have an initial capacity of 25,000 barrels per day and be expandable with additional pump stations.

Natural gas liquids include propane, butane and ethane. The liquids are first removed from natural gas and then separated into different components.

“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.”

The projects are expected to be completed in mid-2015.