Gulf South Pipeline Co. LP and Texas Gas Transmission LLC, along with Energy Transfer Partners LP, said late Thursday they are jointly developing two independently owned and operated natural gas pipeline systems that will interconnect near Carthage, TX to integrate with existing systems in East Texas -- a region where the Bossier Sand and Barnett Shale gas plays are producing at high speed.

The joint development of the new pipes is subject to completion of a multiyear development process, including obtaining customer commitments, regulatory approvals and definitive agreements, the companies said.

Gulf South is proposing construction of a 36-inch interstate pipe, with an initial capacity of 1 Bcf/d that will originate in Carthage, where it will interconnect with Energy Transfer's pipes, then be connected with Gulf South's existing mainline system in Louisiana and Mississippi and with Texas Gas' mainlines in Louisiana. In addition to its previously announced projects, Energy Transfer wants to develop a 36-inch pipeline from its Texoma pipeline east to Carthage.

The new projects, in combination with Energy Transfer's 11,700-mile intrastate pipeline system, will provide access to all the major supply basins in Texas. Gulf South and Energy Transfer also will provide transportation to several market centers on Gulf South, including Perryville, LA and the Henry Hub, Midwest markets on Texas Gas, and industrial and pipe markets located east of the Mississippi River, including the Baton Rouge to New Orleans corridor, Florida Gas Transmission Zone 3, Transco Zone 4 and Texas Eastern M1.

"Our previously announced multiphase pipeline expansion was designed to provide producers with the needed pipeline capacity out of Central and East Texas to our Texoma pipeline, which interconnects certain interstate pipelines," said Roy Patton, senior vice president, Energy Transfer. "This project enhances our expansion through the development of a pipeline from Texoma to Carthage, accessing the new Gulf South interstate pipeline and the additional markets Gulf South provides."

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