Regency Announces Expansion of Gathering and Treating Assets in Eagle Ford Shale
Regency Energy Partners LP (NYSE: RGP) announced today it will construct an expansion of its Edwards Lime Gathering Joint Venture (“Edwards Lime”) in the Eagle Ford Shale located in South Texas. The Edwards Lime Expansion will increase the system's capacity by 90 MMcf/d to 160 MMcf/d, and will provide for additional crude transportation and stabilization capacity of 17,000 BBls/d.
Regency owns a 60 percent interest in Edwards Lime and operates the assets on behalf of the joint venture. The remaining 40 percent interest is owned by Talisman Energy USA Inc. (“Talisman”) and Statoil Pipelines LLC (“Statoil”).
“This expansion will provide additional natural gas and condensate gathering and treating capacity in the liquids-rich Eagle Ford Shale, and we believe this will be an accretive investment for Regency,” said Keith Crawford, regional vice president of Regency.
“In addition, we are excited to work with our joint venture partners, who have dedicated production within an area of mutual interest to this project which will further expand Regency's presence in the Eagle Ford Shale,” continued Crawford.
Contracts on the expansion are fee-based, which includes reservation fees. Capital expenditures related to the expansion are expected to total approximately $150 million. Regency will be responsible for approximately $90 million; this amount is included in Regency's previously announced 2012 growth capital projections. The project is expected to be complete in the fourth quarter of 2012.
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