Source: Energy Transfer Partners
Energy Transfer Partners, L.P. (NYSE: ETP) entered into multiple long-term agreements with shippers to provide additional transportation services from the Eagle Ford Shale located in South Texas. To facilitate these agreements, ETP will construct a natural gas pipeline, a processing plant and additional facilities at an approximate cost of $300 million.
These projects will expand the Partnership’s extensive midstream infrastructure in the Eagle Ford which includes the recently completed Dos Hermanas Pipeline and the Chisholm Pipeline that is scheduled for completion in the second quarter of 2011.
The 160-mile, 30-inch Rich Eagle Ford Mainline (REM) will have a capacity of 400 million cubic feet per day, with the ability to expand capacity to 800 million cubic feet per day. This rich gas gathering system, which is expected to be in service by the fourth quarter of 2011, will originate in Dimmitt County, Texas and extend to the Partnership’s Chisholm Pipeline for ultimate deliveries to the Partnership’s existing processing plants and to a new 120,000 Mcf per day processing plant.
“The development of the REM is exciting for both our Partnership and producers in the Eagle Ford Shale who need this additional take away capacity,” said Tim Dahlstrom, Energy Transfer’s senior vice president. “The pipeline is a significant organic growth project for our Partnership and represents another major step toward our goal of becoming a major player in the rich Eagle Ford play. The REM project will also add value to our existing downstream infrastructure.”
Energy Transfer Partners, L.P. (NYSE: ETP) is a publicly traded partnership owning and operating a diversified portfolio of energy assets. ETP has pipeline operations in Arkansas, Arizona, Colorado, Louisiana, Mississippi, New Mexico, Utah, and West Virginia and owns the largest intrastate pipeline system in Texas. ETP currently has natural gas operations that include more than 17,500 miles of gathering and transportation pipelines, treating and processing assets, and three storage facilities located in Texas. ETP also is one of the three largest retail marketers of propane in the United States, serving more than one million customers across the country.
Energy Transfer Equity, L.P. (NYSE:ETE) is a publicly traded partnership, which owns the general partner of Energy Transfer Partners and approximately 50.2 million ETP limited partner units; and owns the general partner of Regency Energy Partners and approximately 26.3 million Regency limited partner units.