Energy Tranfer Partners begins construction of Tiger Pipeline in Haynesville Shale

Source: Energy Transfer Partners

Energy Transfer Partners, L.P. (ETP) began construction on the approximately 175-mile Tiger Pipeline, an interstate natural gas pipeline to serve the Haynesville Shale and Bossier Sands producing regions in Louisiana and East Texas.

The 42-inch diameter Tiger Pipeline will have an initial capacity of 2 billion cubic feet per day and is expected to be in service in the first quarter of 2011. Through a planned expansion project announced in February, and subject to FERC approval, the ultimate capacity of the Tiger Pipeline is expected to be 2.4 billion cubic feet per day, all of which is sold out under long-term contracts ranging from 10 to 15 years. Pending necessary regulatory approvals, the expansion is expected to be in service in the last half of 2011.

The Tiger Pipeline will originate in Panola County, Texas and terminate in Richland Parish, Louisiana, interconnecting to seven interstate pipelines and one intrastate pipeline for ultimate delivery to markets across the Northeast, Southeast, Mid-Atlantic and Midwest. Construction of the pipeline has been awarded to two contractors: Henkels & McCoy (78 miles) and Michels Corporation (97 miles). Pre-expansion project costs for the Tiger Pipeline are expected to be $1.095 billion, down nearly $70 million from previous estimates.



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