Crosstex Energy LP announced last Thursday it will build a 29-mile natural gas pipeline in the Dallas-Fort Worth, TX, area to provide greater takeaway capacity to gas producers in the prolific Barnett Shale formation.

The ultimate capacity of the 20- and 24-inch diameter gathering system in north Johnson County, TX, will be approximately 400 MMcf/d when all three phases of construction are completed, which is planned for the second quarter of 2008, the Dallas-based midstream company said. Initially, the pipeline will transport approximately 80 MMcf/d, with service to begin in the third quarter of this year. Full capacity utilization is expected by 2009, Crosstex said.

The project, which will have an estimated cost of $80 million, will include three compressor stations totaling 36,000 hp.

Crosstex said it has secured capacity commitments from major producers that operate in the Barnett Shale, including active Barnett player Chesapeake Energy, which will be the anchor shipper on the pipeline.

"We are constructing the first large-diameter, low-pressure gathering lines into what is becoming the new heart of the Barnett Shale," said Crosstex President Barry E. Davis. "The expansion will provide new and existing Crosstex customers with much-needed outlets to Texas markets and access to long-haul transportation pipelines to other major U.S. markets."

Crosstex Energy operates more than 5,000 miles of pipeline, processing plants, fractionators and approximately 200 natural gas amine-treating plants. It provides services for more than 3.5 Bcf/d of natural gas, or approximately 7% of marketed U.S. daily production.

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