Crosstex Energy LP has entered into a 10-year firm transportation agreement with a major Barnett Shale gas producer for an additional 50 MMcf/d on its North Texas gathering system, the partnership said Monday.

The partnership is constructing a compressor station on an existing gathering line to accommodate the customer’s transportation requirements, it said. The project is scheduled to be completed and operational in the first quarter of 2011. Incremental investment required for the project is estimated to be less than $10 million and the annual cash flow from the agreement is expected to be approximately $8 million.

“We are able to make relatively low-cost, incremental investments that generate high returns and enhance the utilization of our core assets,” said Crosstex CEO Barry E. Davis. “We will continue to look for opportunities in North Texas where our operations are located in the heart of the Barnett Shale, one of the most significant shale plays in the U.S.”

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