Enterprise Products Partners LP and Duncan Energy Partners LP said they have received additional firm transportation commitments from shippers that are sufficient to support expanding the capacity of their recently announced 249-mile Haynesville Extension into northwest Louisiana to 2.1 Bcf/d. They said they have ordered 42-inch diameter pipe, which is larger than what was originally planned.
Last month Enterprise and Duncan said their Acadian Gas LLC subsidiary would extend its Louisiana intrastate pipeline to give Haynesville Shale producers expanded access to markets via Acadian’s existing 1,000-mile system in South Louisiana and connections to nine major interstate pipelines (see Daily GPI, Oct. 29). Known as the Haynesville Extension, the project was initially intended to transport up to 1.4 Bcf/d from the Haynesville area through 36-inch diameter and 30-inch diameter pipeline that would connect to Acadian’s existing system as well as its affiliated Cypress Gas Pipeline.
The extension is expected to be in service in September 2011.
The project will provide producers in the Haynesville Shale play with much needed takeaway capacity, including access to more than 150 end-use markets along the Mississippi River corridor between Baton Rouge and New Orleans, the companies said. Shippers will be able to access a rapid-cycle salt dome storage cavern, have the ability to make physical deliveries into the Henry Hub and benefit from more favorable pricing points, they said.
The Haynesville Shale covers about two million acres in northwest Louisiana, almost all of which is under lease. Production from the approximately 200 wells drilled to date is estimated at more than 1 Bcf/d, according to Enterprise and Duncan. There are 400 locations in various stages of drilling and completion with 150 rigs working in the region.
Acadian Gas is 66% owned by Duncan Energy Partners and 34% owned by Enterprise. Enterprise is the parent of Duncan and recently completed a merger with TEPPCO Partners LP to create what it claims is the largest publicly traded partnership (see Daily GPI, Oct. 27; July 29; June 30).
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