Regency Energy Partners declared it will build a processing facility in Ward County, Texas, to process natural gas delivered from the liquids-rich Bone Spring and Avalon Shale formations. The new facility will be built through a joint venture with Anadarko Pecos Midstream LLC, a wholly owned subsidiary of Anadarko Petroleum Corporation and an affiliate of Chesapeake Energy Corporation.

We have longstanding relationships with Anadarko and Chesapeake and are pleased to have the opportunity to partner with them to build this facility.

This joint venture highlights Regency's ability to combine our gathering and processing expertise, along with our natural gas liquids platform, to provide a full-service solution to producers' needs in the region, says Jim Holotik, executive vice president and chief commercial officer of Regency. We have longstanding relationships with Anadarko and Chesapeake and are pleased to have the opportunity to partner with them to build this facility.

The project will consist of the construction of two plants, a 25 million cubic feet per day refrigeration plant and a 100 MMcf/d cryogenic processing plant. The initial start-up of the refrigeration unit is expected to be in-service by the second quarter of 2012, with full facilities available by the fourth quarter of 2012. Capital expenditures related to this project are expected to total approximately $100 million, of which one-third will be owned and contributed by each joint-venture partner.

Tags: Regency Energy Partners LP