Acadian Gas LLC has contracted with a shipper to transport gas on its Haynesville Extension pipeline, growing the total capacity commitments on the project, now under construction, by 200 MMcf/d, Acadian’s owners said last week.
The company is 66% owned by Duncan Energy Partners LP and 34% owned by Enterprise Products Partners LP. Affiliates of Enterprise own the general partner of Duncan Energy and approximately 58% of the outstanding common units of Duncan Energy.
Enterprise also said the expansion of its recently acquired State Line gas gathering system serving producers in the Haynesville Shale area of Northwest Louisiana is scheduled to be completed this month.
The Haynesville Extension is an expansion of the Acadian Gas intrastate system that provides Haynesville producers with access to 150 end-use customers, including industrial and municipal consumers, on the Acadian system and markets across the eastern United States through interconnects with 12 interstate pipelines, including the Florida Gas Transmission and Southern Natural Gas (see NGI, Nov. 2, 2009). Construction of the 270-mile project is expected to be completed in the third quarter of 2011.
The expansion of the State Line system, which Enterprise acquired from M2 Midstream LLC (see NGI, April 5), will increase the capacity from approximately 400 MMcf/d to 700 MMcf/d. State Line infrastructure includes the Battlefield treating facility in southern DeSoto Parish, LA, which has the capacity to treat up to 180 MMcf/d. A pipeline is being constructed that will have the capacity to deliver up to 250 MMcf/d from the Battlefield treating facility to the 42-inch diameter Gulf South Pipeline at the Kingston Station in DeSoto Parish, LA.
Due to volume growth and demand for treating services, Enterprise is expanding its Battlefield and Keatchie treating facilities to add two amine units, each with a circulation rate of 700 gal/min, the partnership said. The units would provide up to 350 MMcf/d of incremental capacity. The expansions are expected to be completed in the fourth quarter.
“With producers’ success in developing the Haynesville and Bossier Shale plays, the expanding footprint of the play, and based on current discussions and negotiations with producers, we are on track to quickly have the Haynesville Extension fully contracted,” said Enterprise CEO Michael A. Creel.
In other Haynesville infrastructure news, Energy Transfer Partners LP plans to serve the play with a new 63-mile pipeline along with gathering and treating services it said last week. The proposed intrastate line would run from southeast Shelby County to Nacogdoches County in Texas.
The project would consist of predominately 20- and 24-inch diameter pipe and would have an initial capacity of 645 MMcf/d, Energy Transfer said. The pipeline is supported by production from multiple 10-year agreements that encompass approximately 264,000 acres in the East Texas area, the partnership said.
“This project shows our continued emphasis on developing organic growth projects and providing producers unparalleled access to markets throughout the country,” said Energy Transfer Partners’ Tim Dahlstrom, senior vice president.
Besides the partnership’s Houston Pipeline System — which provides producers the option to access other interstate and intrastate markets including the Carthage, Waha, Katy and Houston Ship Channel hubs in Texas — the new pipeline would connect with two interstates. Partial service is expected to begin in the third quarter, and full service is expected to be available in the fourth quarter.
Separately Energy Transfer said it has begun construction of its 175-mile Tiger Pipeline, an interstate pipeline to serve the Haynesville Shale and Bossier Sands producing regions in Louisiana and East Texas.
The 42-inch diameter Tiger Pipeline will have an initial capacity of 2 Bcf/d and is expected to be in service in the first quarter of 2011, Energy Transfer said. Through a planned expansion project announced in February (see NGI, Feb. 15) and subject to FERC approval, the ultimate capacity of Tiger is expected to be 2.4 Bcf/d, all of which is sold out under long-term contracts ranging from 10 to 15 years. Pending necessary regulatory approvals, the expansion is expected to be in service in the last half of 2011, Energy Transfer said.
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