Energy Transfer Partners LP said the board of its general partner has approved a $360 million expansion project that will include the addition of 157 miles of 36-inch diameter pipeline and 92,700 horsepower of compression to its proposed 42-inch diameter pipeline system in East and North Texas. The 950 MMcf/d expansion will bring the system's capacity to 2.3 Bcf/d and will bring the total construction cost of the pipeline system to $895 million. The latest expansion is expected to be in service in August 2007.
The new 36-inch diameter line will begin in Limestone County and run southwest to a connection with the 30-inch diameter Texoma system in Hardin County, northeast of Beaumont. Interconnects with several interstate pipelines are being contemplated. Additionally, the Texoma system will deliver gas into Tennessee Gas Pipeline, Transcontinental Gas Pipe Line, a future NGPL interconnect, the Carthage hub, as well as both the east and west side Houston Ship Channel markets.
Energy Transfer said that increased producer commitments out of both the Barnett Shale and Bossier production areas created demand for the expansion project, which will allow shippers to benefit from pricing differentials between marketing hubs. The pipeline will have capacity of up to 950 MMcf/d. It also will increase the capacity of the Texoma system by over 600MMcf/d, with additional capacity available for both intrastate and interstate markets.
"This expansion allows Energy Transfer to offer its producers and shippers complete optionality in the market place," said Jim Holotik, Energy Transfer's vice president of project development. He said it gives producers access to three main Texas gas hubs: Waha, Carthage, and Katy, and affords additional access to interstates and east Houston Ship Channel markets. "This new system offers both Waha and South Texas producers a path around the bottlenecks in the Houston Ship Channel corridor and greater access to both intrastate and interstate markets."
Energy Transfer's system includes 11,700 miles of pipeline in service plus an additional 550 miles of pipeline that is under construction.
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