Energy Transfer Partners LP (ETP) Thursday announced two more binding contracts to transport natural gas via its proposed Tiger Pipeline system. The 180-mile pipeline, to be constructed by ETP and a subsidiary of Chesapeake Energy Corp., would carry gas from Carthage, TX, through the heart of the Haynesville Shale and terminate near Delhi, LA (see Daily GPI, Jan. 28).
ETP entered into binding 10-year contracts with Denver-based EnCana Marketing (USA) Inc., a subsidiary of EnCana Corp., and an undisclosed shipper. ETP did not disclose how much capacity EnCana would take, but last month during a conference call to discuss quarterly earnings EnCana said it had committed to 500 MMcf/d on Tiger (see Daily GPI, April 23).
The two new commitments are in addition to ETP's 15-year contract with Chesapeake Energy Marketing Inc. for 1 Bcf/d, which would bring total capacity commitments on the pipeline to at least 1.5 Bcf/d. The partnership said it is continuing to negotiate with other shippers for capacity on the line.
"The Haynesville Shale is one of the fastest growing natural gas fields in the United States and critical infrastructure is needed to provide takeaway capacity as well as to relieve growing constraints near the Carthage Hub," said ETP's Lee Hanse, senior vice president of the interstate pipeline division.
Tiger would connect to ETP's dual 42-inch diameter pipeline system and interconnect to at least seven interstate pipelines at various points in Louisiana that serve the Northeast, Southeast, Mid-Atlantic and Midwest markets. The pipeline is anticipated to cost $1 billion to 1.2 billion to construct, depending upon the final throughput capacity design. Pending regulatory approvals, Tiger could be in service in the first half of 2011.
Since the beginning of the year, other companies have announced various plans to carry growing Haynesville Shale/East Texas gas supplies to eastern markets.
Enbridge Inc. launched an open season in April for its proposed LaCrosse Pipeline, which would carry gas from the company's Carthage Hub in East Texas to an interconnect with Southern Natural Gas in southeastern Louisiana (see Daily GPI, April 2).
Spectra Energy Corp. in March launched the ETX Expansion Project to expand the existing Texas Eastern Transmission LP mainline for phased-in service beginning in 2010 (see Daily GPI, March 13). And Regency Energy Partners LP and its partners in February announced plans to construct the Haynesville Expansion Project, which initially would transport up to 1.1 Bcf/d of gas from northern Louisiana (see Daily GPI, March 2).
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