Enbridge Energy Partners LP will launch an open season Wednesday to solicit support for firm transportation service on a proposed expansion of its East Texas system, to carry increasing production from the Bossier Sands and Barnett Shale to the Carthage Hub and connections with “premium markets.”

“With a capacity of up to 500 MMcf/d, this 120-mile natural gas transmission pipeline will relieve transportation constraints now faced by shippers with production from the Bossier, Barnett Shale and other regional plays,” said Dan Tutcher, president of Enbridge Energy Co. Inc., the general partner of Enbridge Energy Partners.

“There is so much new gas coming on in the Bossier and Barnett Shale. There’s a tremendous amount of infill drilling — a lot of rigs are at work. It’s cheap to drill and it’s coming on quickly,” Tutcher said. “This line should help relieve a bottleneck.”

Enbridge will anchor the line with its some of its own production. Currently, it produces between 250 and 280 MMcf/d in the area and owns East Texas gathering lines that pick up about 500 MMcf/d. The company already has been talking to producers and knows there’s an interest. Now it’s about economics.

“We have the base, but we need to get to sizing, see how big a pipe we need.” Tutcher said Enbridge would like to see long term commitments. “We want to sit down with producers and see if at these rates we can generate long term commitments to access premium markets.”

The line would originate at Enbridge’s existing facilities near Bethel in Anderson County, TX, and terminate at the Carthage Hub in Panola County, TX, where a number of large interstate pipelines connect.

Tutcher added, “The viability of this large capacity project is further enhanced by our immediate access to production sourced from Enbridge’s existing East and Northeast Texas gathering and transmission systems.” As part of this project, the company plans to expand its header at the Carthage Hub and install new interconnects in the vicinity.

Enbridge Energy Partners in 2001 bought the gas gathering, treating, processing and transmission assets in East Texas from Koch Midstream Services for $230.5 million (see Daily GPI, Oct. 26, 2001).

The open season will begin at noon CDT, Wednesday, Aug. 20, and close at 5 p.m. CDT, Wednesday, Sept. 17, 2003. Shippers interested in participating in this expansion should contact: John Loiacono (713) 821-2068, Steve Marsh (713) 821-2084, Pat Martin (713) 821-2159 and Brant Baird (713) 821-2156

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