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Energy Transfer, Atmos Energy to Build Intrastate Pipe Near Dallas

Energy Transfer, Atmos Energy to Build Intrastate Pipe Near Dallas

Dallas-based Atmos Energy Corp., the country's largest pure natural gas distributor, said last Wednesday that it has entered into a letter of intent with Energy Transfer Partners LP. to jointly construct, own and operate a large-diameter intrastate gas pipeline in the northern portion of the Dallas-Fort Worth Metroplex.

The so-called North Side Loop (NSL) would consist of 45 miles of 30-inch diameter pipeline extending from Atmos Energy's Line W near Justin, TX, (north of the Dallas-Fort Worth Airport) to a point near Frisco in northeastern Texas, the two companies said. The proposed pipe would interconnect with both Atmos Energy's and Energy Transfer's existing pipeline systems near Frisco, which is north of Plano, TX.

The NSL project is expected to be in service by Dec. 31, with an initial capacity of 200,000 MMBtu/d. The line would have the ability to be expanded to 500,000 MMBtu/d at a later date. Atmos and Energy Transfer, also of Dallas, said they expect to have contractual commitments with shippers by the time the project is completed, and plan to build associated pipe facilities to connect new gas production to the pipeline.

Energy Transfer, a publicly traded partnership with gathering and transmission assets, will provide the initial capital to build the NSL pipeline project. Atmos said it will contribute its share of capital within two years of signing a definitive agreement. A definitive agreement will be signed in the "next three or four weeks," at which time Atmos will disclose its intended investment in the project, said spokesman Jerry Hunter.

"Adding this natural gas pipeline will help Atmos Energy deliver reliable and reasonably priced natural gas supplies to one of the fastest growing consumer markets in the United States," said Atmos CEO Robert W. Best. "In addition, the NSL pipeline will add needed transmission capacity to serve natural gas producers and shippers in the Texas intrastate wholesale gas market."

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