Regency Energy Partners Announces Two Pipeline Extensions

Posted on

Regency Energy Partners LP has announced construction of two pipeline expansions to accommodate Haynesville Shale production.
  The first involves an approximately $44 million pipeline extension of Regency’s Nexus Gathering System located in North Louisiana. The pipeline extension, called the Logansport Expansion, will add approximately 300 MMcf/d of gathering capacity to the existing system. 
  The Logansport Expansion will increase the overall deliverability of the Nexus Gathering System by adding approximately 17 miles of 20-inch pipe, as well as associated compression and dehydration facilities.  It will provide gathering customers with additional high-value takeaway options in DeSoto Parish, LA and Shelby County, TX—areas currently experiencing significant drilling activity—and expand Regency’s presence in the Haynesville Shale.  The Logansport Expansion will transport gas gathered by the Nexus Gathering System to an interconnect with CenterPoint Energy Gas Transmission’s Line CP.
  Price Gregory recently kicked off construction efforts on the project, and completion is expected in early 2010.
  In other news, Regency Energy Partners LP, Alinda Capital Partners LLC and GE Energy Financial Services announced plans to construct a $47 million pipeline extension of the Haynesville Expansion Project in North Louisiana to increase capacity on the Regency Intrastate Gas System (RIGS). The extension – called the Red River Lateral – will add approximately 100,000 MMbtu of capacity to the current project, bringing the total project capacity to approximately 1.2 Bcf/d.
  The Red River Lateral, also to be built by Price Gregory,  will add approximately 12.5 miles of 36-inch pipe to the Haynesville Expansion Project and will reach further southwest to the west side of the Red River into Red River Parish, LA, an area considered to be one of the richest and most active in the Haynesville Shale.
  With the exception of a small amount of the capacity currently reserved for operational flexibility, the 1.2 Bcf/d of capacity is fully subscribed.