Fayetteville Express Pipeline construction begins

Fayetteville Express Pipeline, L.L.C., today announced that construction has begun on the Fayetteville Express Pipeline (FEP), a 50/50 joint venture between Energy Transfer Partners, L.P. (ETP) and Kinder Morgan Energy Partners, L.P. (KMP). The approximately 185-mile, 42-inch natural gas pipeline will serve the Fayetteville Shale producing region in Arkansas with an initial capacity to transport up to 2 billion cubic feet per day. 

FEP will originate in Conway County, Ark., continue eastward through White County, Ark, and terminate at an interconnection with Trunkline Gas Company in Panola County, Miss. Contracts have been awarded to Houston-based Willbros Group, Inc. (WG) and Tulsa-based Sheehan Pipe Line Construction Company for the construction of the pipeline. Additionally, Houston-based EMS-USA, Inc. is constructing the Russell Compressor Station near Russell, Ark. Energy Transfer Partners is managing the construction of FEP and will operate the pipeline. The approximately $1.25 billion pipeline project is expected to be in service by late 2010. 

“The start of construction on FEP marks an exciting milestone for us as this project will ensure that our customers have strategic takeaway capacity out of the Fayetteville Shale,” said Luke Fletcher, vice president, Energy Transfer Partners Interstate Pipeline Division. “Now that construction has begun on the pipeline, we look forward to its timely completion, demonstrating our commitment to providing the necessary infrastructure to efficiently move natural gas from producing areas to those who need it.” 

“We are excited construction has kicked off for this much needed pipeline infrastructure for the Fayetteville producers,” said Kimberly Watson, vice president of business development for Kinder Morgan. “FEP has limited the construction risks on the project by executing fixed price lump sum construction contracts with the third party contractors. We look forward to providing our customers the opportunity to move their product to desired markets.”

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