Energy Transfer Completes Expansion, Announces $1.2 Billion Pipeline Project

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The latest efforts by Energy Transfer Partners to address its customers’ needs and to efficiently move natural gas from producing areas to consumers across the country saw the completion of the 56-mile Katy pipeline expansion project. The expansion increases capacity of the Partnership’s existing ETC Katy natural gas pipeline in southeast Texas by more than 400 MMcf/d.
  The 36-inch expansion provides approximately 20,000 horsepower of compression to the 30-inch section of the ETC Katy pipeline, which extends from the Partnership’s Grimes County compressor station to the Katy natural gas trading hub. The project increases the capacity of the pipeline from 700 MMcf/d to more than 1.1 Bcf/d, enhancing transportation service out of the Barnett Shale and Bossier Sands natural gas plays in Texas.
  In other news, Energy Transfer Partners has entered into an agreement with Chesapeake Energy Marketing Inc. to construct a 178-mile 42-inch diameter interstate natural gas pipeline. Designated the Tiger Pipeline, the $1.2 billion natural gas pipeline will connect to ETP’s dual 42-inch diameter pipeline system near Carthage, TX, extend through the heart of the Haynesville Shale and end near Delhi, LA, with interconnects to at least seven interstate pipelines at various points in Louisiana.  It will have an initial throughput capacity of at least 1.25 Bcf/d, which may be increased to 2.0 Bcf/d based on the results of an open season. The agreement with Chesapeake provides for a 15-year commitment for firm transportation capacity of approximately 1 Bcf/d.
  Pending necessary regulatory approvals, Tiger Pipeline is expected to be in service by mid-2011.