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Energy Transfer to Pump $300M Into Eagle Ford Infrastructure

February 22, 2011
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Responding to the requests of customers as oil and natural gas development continues to increase in the Eagle Ford Shale of South Texas, Energy Transfer Partners LP (ETP) said Friday it has entered into multiple long-term agreements with shippers to provide additional transportation services, which will require new infrastructure including the construction of the Rich Eagle Ford Mainline (REM).

To facilitate the agreements, ETP said it 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 midstream infrastructure in the Eagle Ford, which includes the recently completed Dos Hermanas Pipeline and the Chisholm Pipeline that is scheduled for completion in 2Q2011.

Responding to the requests of shippers last October, Dallas-based ETP unveiled plans for the Dos Hermanas and Chisholm pipelines, which will consist of more than 130 miles of 20- and 24-inch diameter pipeline capable of transporting up to 700 MMcf/d of liquids-rich natural gas (see Shale Daily, Oct. 19, 2010).

The 160-mile, 30-inch REM will have a capacity of 400 MMcf/d, with the ability to expand capacity to 800 MMcf/d. This rich gas gathering system, which is expected to be in service by 4Q2011, will originate in Dimmitt County, TX, and extend to the partnership's Chisholm Pipeline for ultimate deliveries to the partnership's existing processing plants and to a new 120 MMcf/d processing plant.

"The development of the REM is exciting for both our partnership and producers in the Eagle Ford Shale who need this additional takeaway 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."

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