Additional Gathering And Processing Capacity For Eagle Ford Producers

Posted on

Kinder Morgan Energy Partners LLC and Copano Energy, L.L.C. plan to expand the scope of their Eagle Ford Gathering LLC joint venture. Eagle Ford Gathering will provide more than 200,000 MMBtu/d of incremental gathering and processing capacity to producers in the Eagle Ford Shale area in Texas through construction of additional pipeline facilities and a long-term agreement with Formosa Hydrocarbons Company for additional processing and fractionation services.
  In addition to the 111 miles of pipeline currently under construction, Eagle Ford Gathering will build a 54-mile, 24-inch diameter crossover pipeline between existing Kinder Morgan pipelines, and an additional 20-mile, 20-inch diameter pipeline that will enable the joint venture to deliver gas to Formosa. Kinder Morgan will construct and operate the two additional pipelines.
  Kinder Morgan and Copano will invest approximately $100 million to construct the crossover pipeline and related facilities and expect to complete the new facilities by year-end 2011. Eagle Ford Gathering’s previously announced that a $175 million, 30-inch pipeline in the western portion of the shale play is under construction and remains on schedule to be completed in the third quarter of 2011. Copano will serve as operator of the 30-inch pipeline.