Energy Transfer Partners LP’s (ETP) proposed 180-mile Tiger natural gas pipeline to tap the Haynesville Shale received another vote of confidence Tuesday in the form of a 10-year contract with an undisclosed shipper to transport 300 MMcf/d, bringing total capacity commitments on the project to at least 1.8 Bcf/d.

To be constructed and operated solely by an ETP subsidiary, the Tiger Pipeline would carry gas from Carthage, TX, through the heart of the Haynesville Shale and terminate near Delhi, LA (see Daily GPI, Jan. 28).

This new capacity commitment is in addition to previously announced agreements including a 10-year contract with EnCana Marketing (USA) Inc., a subsidiary of EnCana Corp., for 500 MMcf/d, and a 15-year contract with Chesapeake Energy Marketing, Inc., a subsidiary of Chesapeake Energy Corp., for 1 Bcf/d (see Daily GPI, May 8; April 23).

“We are excited about increasing the volume committed to the Tiger Pipeline project by entering this new long-term agreement,” said Lee Hanse, senior vice president of ETP’s Interstate Pipeline Division. “This volume commitment further demonstrates the need for additional pipeline capacity out of the increasingly active Haynesville Shale natural gas play. The construction of the Tiger Pipeline will help provide critical takeaway capacity and ensure that producers have flexibility and enhanced market access as they continue to develop this emerging resource.”

ETP also announced that it filed an application on Aug. 31 with the Federal Energy Regulatory Commission requesting a certificate of public convenience and necessity that would authorize construction and operation of the pipeline. Pending necessary regulatory approvals, the pipeline is expected to be under construction by June 2010 and in service in the first half of 2011.

The pipeline will connect to ETP’s dual 42-inch diameter pipeline system near Carthage with interconnects to at least seven interstate pipelines at various points in Louisiana that serve the Northeast, Southeast, Mid-Atlantic and Midwest markets.

ETP said the pipeline will have an initial throughput capacity of 2 Bcf/d, which may be increased to up to 2.4 Bcf/d with added compression.

©Copyright 2009Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.