Regency Energy Partners LP has completed the Phase I and Phase II expansions of its Logansport Gathering System in the Haynesville Shale in North Louisiana.
The expansions, announced last year (see Daily GPI, Nov. 20, 2009), add an incremental 485 MMcf/d of gathering capacity to Regency's existing system and went into service Tuesday.
"The Logansport Expansions provide producers in DeSoto Parish, LA, and Shelby County, TX, with additional takeaway options for the rapidly growing production around the Haynesville Shale," said Regency CEO Byron Kelley. "The Logansport Expansions, which were completed under budget, are expected to contribute fee-based cash flows to our business and further strengthen Regency's position in the Haynesville Shale."
The expansions increase the total gathering capacity of the Logansport Gathering System to approximately 710 MMcf/d by adding approximately 28 miles of gathering pipeline, ranging from 10 to 24 inches in diameter. The projects also included the construction of a 300 MMcf/d amine treating plant, as well as compression and dehydration facilities.
In addition, the expansions will add about 435 MMcf/d of incremental interconnect delivery capacity to Dallas-based Regency's existing system and will deliver gas gathered by the Logansport Gathering System to a 300 MMcf/d interconnect with CenterPoint Energy Gas Transmission's Line CP.
Last month Regency said it sold its East Texas gathering and processing assets to an affiliate of Tristream Energy LLC for about $70 million (see Daily GPI, July 16). "The sale...allows us to place greater focus on the expansion of core assets within higher-growth regions, including several of the major shale plays," Kelley said at the time.
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