Anadarko taps Kinder Morgan/Copano JV for Eagle Ford gas services

Source: Eagle Ford Gathering LLC

Eagle Ford Gathering LLC, a joint venture between Kinder Morgan Energy Partners, L.P. (NYSE:KMP) and Copano Energy, L.L.C. (Nasdaq:CPNO), has executed a definitive long-term agreement to provide significant natural gas gathering, transportation, processing and fractionation services to Anadarko E&P Company LP (NYSE:APC) in the Eagle Ford Shale resource play

"We look forward to working with Anadarko and are pleased to add them to a growing list of producers who have chosen to use Eagle Ford Gathering's midstream services," said R. Bruce Northcutt, Copano Energy's president and chief executive officer. "Eagle Ford Gathering's agreement with Anadarko represents a significant step toward full utilization of the joint venture's newly expanded capacity." 

Duane Kokinda, president of Kinder Morgan's Texas Intrastate Pipeline Group, said, "We are pleased that Anadarko, one of the largest producers in the Eagle Ford Shale play, has signed on for a significant portion of Eagle Ford Gathering's expanded capacity. We are continuing discussions with other producers and we are optimistic that we will fully subscribe the expanded project capacity in the near future." 

Eagle Ford Gathering's previously announced 30-inch pipeline in the western Eagle Ford Shale play is under construction and is expected to begin service in the third quarter of 2011. After fully subscribing its initial capacity of 375,000 MMBtu per day, the joint venture recently announced plans to construct 74 miles of additional pipelines that will enable it to deliver natural gas to Formosa Hydrocarbons Company for processing. The additional pipelines, which are expected to be completed by year end, will enable the joint venture to more fully utilize the 600 MMcf per day capacity of its 30-inch pipeline.

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