Crosstex Energy LP announced the start-up of its $90 million pipeline expansion in northern Louisiana, which initially adds capacity of 200 MMcf/d to the company's existing Louisiana Intrastate Gas (LIG) pipeline system, the state's largest intrastate pipeline network.
The new pipeline has commitments to utilize the initial 200 MMcf/d as of its April 1 initial flow date. Crosstex has the option to increase capacity up to 240 MMcf/d. The expansion adds 72 miles to the 2,000-mile LIG system and includes 63 miles of 24-inch diameter pipeline and nine miles of 16-inch diameter pipeline, traversing three parishes.
"As a result of the region's dramatically higher production, the takeaway capacity from the area has become insufficient," said Crosstex CEO Barry E. Davis. "Our new pipeline will prove to be an attractive outlet for this increased production. In order to provide access to new markets, Crosstex's pipeline expansion will add new interconnects and expand existing interconnects, including ANR, Texas Gas, Trunkline and Columbia Gulf. In addition, this expansion will provide Crosstex with access to prolific North Louisiana gas production to supply our existing intrastate markets."
In November Crosstex said it would expand its North Texas Pipeline, which is upstream of Boardwalk Pipeline Partners' Gulf Crossing Pipeline project to move gas from the Barnett Shale of North Texas to the Perryville Hub in North Louisiana. Crosstex agreed to be a foundation shipper with a 10-year agreement for 150,000 Dth/d of firm transportation capacity on the project (see Daily GPI, Nov. 20, 2006).
Crosstex is a midstream gas company headquartered in Dallas and operates over 5,000 miles of pipeline, 12 processing plants, four fractionators and approximately 160 natural gas amine-treating plants in service and approximately 35 dew point control plants.
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