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Lone Star NGL LLC, a joint venture of Energy Transfer Partners LP and Regency Energy Partners LP, plans to construct a 533-mile, 24- and 30-inch diameter natural gas liquids (NGL) pipeline from the Permian Basin to Mont Belvieu, TX, and convert its existing West Texas 12-inch diameter NGL pipeline into crude oil/condensate service. The new pipeline and conversion projects, estimated to cost $1.5-1.8 billion, are expected to be operational by the third quarter of 2016 and the first quarter of 2017, respectively. The new pipeline is being built to accommodate Lone Star's contracted NGL transportation volumes that will exceed its existing 290,000 b/d of capacity from the Permian by 2016. The 24-inch diameter pipeline will be sized to transport 375,000 b/d from the Permian to Bosque County while the 30-inch diameter pipeline is sized to transport 495,000 b/d from Bosque County to Mont Belvieu. The pipelines could be expanded easily, according to Lone Star. The 12-inch diameter West Texas NGL pipeline to be converted to crude/condensate service runs from the Midland, TX, area to the Gulf Coast and will be sized to ship 70,000 b/d to Corsicana, TX, and 100,000 b/d to Sour Lake, TX. An open season is to be held later.

Crowley Maritime Corp.'s liquefied natural gas (LNG) unit has been awarded a multi-year contract to supply containerized, U.S.-sourced LNG to a pharmaceutical company's manufacturing plants in Puerto Rico. Crowley did not disclose the customer's name. The contract, executed through Crowley's Carib Energy LLC subsidiary, includes the fuel supply and transportation of LNG. Carib will use over-the-road transportation of 40-foot intermodal containers to carry 10,000 gallons of LNG to its Jacksonville, FL, shipping terminal. Once in Jacksonville, the containers will be loaded onto company-owned vessels departing for Puerto Rico. Upon arrival on the island, Crowley's Puerto Rico-based logistics team will deliver the LNG to the customer's facilities. There the LNG will be re-gasified into pipeline natural gas for boiler consumption. Crowley entered the LNG market by acquiring Carib last year. Earlier this year it struck a deal to provide LNG to Coca-Cola bottlers in Puerto Rico (see Daily GPIMarch 12). In 2011, Carib Energy became the first company to receive authorization from the U.S. Department of Energy to export LNG to free trade agreement countries in Central America, South America and the Caribbean (see Daily GPIAug. 2, 2011). It was awarded a license to transport up to 11.53 Bcf/year over a 25-year term.

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