Copano Energy LLC and Magellan Midstream Partners LP have formed of a joint venture (JV) to deliver Eagle Ford Shale condensate to Corpus Christi, TX. The JV’s project will make use of new and existing pipeline infrastructure.

The JV, known as Double Eagle Pipeline LLC, will construct and own about 140 miles of pipeline to connect an existing 50-mile pipeline segment owned by Copano to Karnes, Live Oak, McMullen and LaSalle counties in Texas. The system will enable delivery of condensate to Magellan’s terminal in Corpus Christi. The initial capacity of the pipeline is to be 100,000 b/d. Double Eagle also will construct a new truck unloading facility along the pipeline near Three Rivers, TX, for deliveries of condensate destined for Corpus Christi.

“Combined, we are able to provide an attractive option for shippers to deliver petrochemical-quality Eagle Ford condensate for use in Corpus Christi or higher-valued Texas markets via Magellan’s marine capabilities,” said Magellan CEO Michael Mears.

The project is supported by long-term customer commitments from Talisman Energy USA Inc. and Statoil Marketing and Trading (US) Inc., the partners said. The expected cost of the new facilities is $150 million and will be shared equally by Copano and Magellan. Copano will oversee construction of the pipeline and serve as operator. The companies expect to provide limited services by the end of 2012, with full service available beginning in the first quarter of 2013.

“By combining Copano’s pipeline assets with access to Magellan’s terminal at Corpus Christi, the joint venture will be able to leverage existing infrastructure and provide producers timely access to market alternatives at very competitive rates,” said Copano CEO R. Bruce Northcutt. “The joint venture will continue to look for ways to expand the project and capture other condensate and oil-related growth opportunities in the Eagle Ford Shale play.”

In connection with the JV, Copano will convert its existing 50-mile pipeline from natural gas to condensate service, and Magellan will make enhancements to its Corpus Christi terminal, including the construction of 500,000 bbl of new dedicated condensate storage and a new dedicated dock delivery pipeline.