CenterPoint Energy Gas Transmission Co, (CEGT) is holding a nonbinding open season through June 18 for potential expansion of its nearly 1.9 Bcf/d, 42-inch diameter Carthage to Perryville (Line CP) pipeline. The expansion would support growing Haynesville Shale production by providing delivery into the Perryville Hub and to the Carthage area.

“Growing demand and expressions of interest due to prolific natural gas production volumes, as well as forecasts from the Haynesville area in North Louisiana and East Texas, lead us to believe that there’s an opportunity to expand Line CP,” said Cy Zebot, CEGT chief commercial officer. “Assuming adequate expressions of interest, we’re prepared to execute binding precedent agreements and seek necessary governmental authorizations to place expansion capacity into service as early as the fourth quarter of 2012.”

Potential expansion of Line CP could provide incremental supplies access to the interstate pipelines serving the Midwest and Northeast by utilizing CEGT’s Perryville Hub services where there could be interconnectivity and direct access to storage facilities being developed near the Perryville Hub and Delhi, LA (see Daily GPI, June 1; March 11).

The expansion could also provide incremental supplies access to markets in the Southeast through the Southeast Supply Header. CEGT said it will evaluate options for deliveries and interconnectivity to Carthage, which would provide Haynesville Shale producers access to Texas markets.

The specific facilities required will be a function of the location and volume level commitment of potential supply sources. Final pricing determinations will be based on the facility costs, the level of firm commitments and the amount of interest indicated in accessing downstream interstate pipelines.

CenterPoint Energy Field Services Inc. recently announced that it was growing its gathering and treating infrastructure in the Haynesville Shale (see Daily GPI, May 4).

For information on the open season contact Bryan Ginsburg, senior director business development, (713) 207-5166 or bryan.ginsburg@centerpointenergy.com; or Kathy Kennedy, business development manager, (713) 207-5189 or kathy.kennedy@centerpointenergy.com.

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