Energy Transfer Partners Announces Further Expansion of Its Eagle Ford Shale Projects

abarrelfullabarrelfull wrote on 16 Feb 2012 15:18
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Energy Transfer Partners, L.P. (NYSE: ETP ) today announced it has entered into new multiple long-term, fee-based agreements with producers to provide natural gas gathering, processing, and liquids services from the Eagle Ford Shale in South Texas. To facilitate the agreements, ETP will further expand the previously announced Rich Eagle Ford Mainline (REM) pipeline and will construct another new cryogenic processing facility.

”We are pleased to announce the new expansions to our Eagle Ford infrastructure,” said Brian Beebe, Senior Vice President of Energy Transfer. “This latest REM pipeline expansion and new processing plant exemplify the continued robust demand by our customers for additional infrastructure in the Eagle Ford Shale. Since October 2010, when we announced the construction of our Dos Hermanas rich gathering pipeline, we have seen ever-increasing demand by customers for take away solutions for their production. In addition to the Dos Hermanas pipeline, Energy Transfer has shown its commitment to meeting producers’ needs in the Eagle Ford region by building the Chisholm and REM pipelines, and related plants/facilities, all supported by long-term fee-based contracts with total volume commitments now totaling more than 1.1 billion cubic feet per day.”

Rich Eagle Ford Mainline Expansion
Upon full completion, REM will consist of approximately 257 miles of 30-inch and 42-inch pipe with a capacity in excess of one billion cubic feet per day. The initial phase of the REM pipeline, consisting of approximately 160 miles of 30-inch pipe, was placed in service in October 2011. The first expansion, 60 miles of 42-inch pipe, is scheduled for completion in the fourth quarter of 2012 and the second expansion, 37 miles of 30-inch pipe, is scheduled to be completed by the fourth quarter of 2013.

New Processing Plant
The new processing plant, located in Karnes County, Texas will provide approximately 200 million cubic feet per day of capacity and is necessary to fulfill the new long-term shipper commitments on REM. This new plant, which is scheduled to be completed in the fourth quarter of 2012, and the previously announced Chisholm and Jackson County Processing Plants, will provide approximately 1.125 billion cubic feet per day of processing capacity. Total cost for the Karnes County Processing Plant and the REM expansion is estimated to be $210 million.

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