Dallas-based Energy Transfer Partners LP (ETP) has entered into new long-term transportation agreements with several producers in the Barnett Shale and Bossier Sand plays in North and East Texas to transport up to an additional 1.045 Bcf/d. The agreements, with terms ranging from five-to-10 years, are tied to ETP's planned pipeline expansions, which were announced last July (see Daily GPI, July 7, 2005).
The new commitments provide for a minimum of 800 MMcf/d of demand-based transportation fees over an average contract term of eight years, the company said. In addition to the transportation fees, several of the agreements also require ETP to provide treating and processing services. ETP did not disclose the agreement details.
More than 700 MMcf/d of these additional volumes are committed to ETP's planned 42-inch diameter pipeline project, which brings the total long-term commitments to more than 1.7 Bcf/d on the pipeline. ETP is currently conducting engineering studies to determine the best alternatives to provide for additional capacity to support these new commitments to provide for a target takeaway capacity of up to 2.5 Bcf/d. The remaining volumes under the new commitments are committed for transportation over ETP's other pipeline systems, including the announced 24- and 30-inch diameter Fort Worth Basin looping projects.
"We are excited about the tremendous organic growth opportunities that we are experiencing, which have the potential to provide significantly better rates of return than those that are achievable through the acquisition process," said Mike Howard, COO of Midstream Operations. "We will continue to work with producers to build projects that are necessary to provide outlets for gas production in areas where pipelines do not exist or where current capacity is limited."
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