Enterprise Products Partners LP Thursday said its affiliates have signed new long-term agreements with major Barnett Shale producers for 900 MMcf/d of capacity on its 1.1 Bcf/d Sherman Extension pipeline, which is due to go into operation in the fourth quarter. The Houston-based energy company also announced plans to build a lateral to increase takeaway capacity from the Barnett Shale region.

The 178-mile Sherman Extension (see Daily GPI, Nov. 13, 2006) is a major expansion of Enterprise’s Texas intrastate natural gas pipeline system. It will extend from an interconnect with a segment of Enterprise’s system in Erath County, TX, to Grayson County, TX, where it will connect to the Gulf Crossing interstate pipeline that was approved by the Federal Energy Regulatory Commission in May. The proposed extension will provide Barnett producers access to markets in the Southeast, Midwest and Northeast, as well as in the West, according to Enterprise Products.

To accommodate growing Barnett Shale production, Enterprise said it also plans to build a 40-mile supply lateral that would extend from the Trinity River Basin north of Arlington, TX (outside of Dallas) to an interconnect with the Sherman Extension near Justin, TX, in Denton County. The proposed 30- to 36-inch diameter pipeline would provide up to 1 Bcf/d of gas takeaway capacity for producers in Tarrant and Denton counties, the company said.

In addition, the project would include a line to provide transportation services for gas produced from the Newark East field in Wise County, TX. The proposed Trinity River Basin lateral and connecting Newark East line are anchored by long-term agreements with major producers and are targeted for in-service in the third quarter of 2009, Enterprise Products said.

“Production from the Barnett Shale currently exceeds 4 Bcf/d and is expected to increase to approximately 6 Bcf/d by 2011. We believe the Sherman Extension and the pipeline lateral into the Trinity River Basin will provide producers valuable transportation capacity for their production. Given the expected growth in the region, we are evaluating the need to expand the Sherman Extension beyond its current planned capacity of 1.1 Bcf/d,” said Enterprise CEO Michael A. Creel.

Enterprise said it completed and began service earlier this month on a 42-mile section of the Sherman Extension from Erath County to Parker County, TX.

Enterprise Products transports natural gas, natural gas liquids, crude oil and petrochemical products on more than 35,000 miles of onshore and offshore pipelines.

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