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Permalink Reply by RBH on October 20, 2009 at 15:37

from the website--the full press release http://www.tenaska.com/newsItem.aspx?id=65

clearly they believe in potential of the Bossier/Haynesville in E Tx and the long term gas picture

In business since 1987, Tenaska, one of the largest independent power producers in the United States, has established a solid reputation as a reliable provider of value

New East Texas Gathering System Announced by Tenaska Capital Management - 10/08/09

800 MMcfd Pipeline System to Provide Greater Takeaway and Market Flexibility

OMAHA, Nebraska – Tenaska Capital Management, LLC (TCM), an affiliate of Tenaska Energy, Inc., has announced plans to build a new natural gas gathering system with multi-market capability to serve the Haynesville shale formation in areas of East Texas lacking in gathering infrastructure.

TCM, manager of the $2.4 billion TPF II, L.P., a private equity fund, says the 140-mile gathering system will have an initial capacity of 500 million cubic feet (MMcf) per day, with an ultimate capacity of 800 MMcf per day achievable with the addition of compression.

The gathering system will traverse Nacogdoches, San Augustine, Shelby and Panola Counties, providing greater takeaway capacity and market flexibility. A TCM affiliate is in the process of acquiring right-of-way.

“Development of this gathering system is a reflection of the confidence TCM has placed in the potential for the Haynesville shale formation,” said TCM CEO and Senior Managing Director Paul Smith. “The Haynesville formation has the capacity to be one of the most productive of the deep shale formations in the U.S.”

Smith said the gas will be profitable for producers even in the current gas price environment. “We believe the Haynesville formation will keep this pipeline operating at capacity for years to come.”

Mike Latchem, who is responsible for development of the project, said the gathering system will begin deliveries in early 2010 to multiple existing major local and interstate pipeline systems in Nacogdoches County. The remainder of the pipeline connecting to multiple interstate and intrastate pipeline systems near Carthage, Texas, will be completed in the second quarter of 2010.

“Our development of this project has generated significant interest from producers, and we expect the pipeline to be fully subscribed by year end 2009,” said Latchem. “We will be providing the infrastructure required by our customers and unmatched flexibility to access the local and interstate markets in East Texas.”

Businesses and customers may direct questions to Latchem at (214) 520-7877, mobile (214) 478-8520, or MLatchem@tenaska.com.

About Tenaska Capital Management, LLC

Tenaska Capital Management, LLC (TCM), an affiliate of Tenaska Energy, Inc., provides management services to TPF II, L.P. TCM is the manager of Tenaska Power Fund, L.P. and TPF II, L.P.

About Tenaska Energy, Inc.

Tenaska Energy, Inc. is one of the largest independent power producers in the U.S. Forbes magazines ranks Tenaska 24th on its list of the largest privately held U.S. companies, based on 2007 revenues. Tenaska has developed approximately 9,000 megawatts of electric generating capacity across the U.S. Tenaska affiliates currently operate, manage and own in partnership with other companies eight power plants in six states totaling approximately 6,800 MW of generating capacity. Tenaska is headquartered in Omaha, Nebraska, with offices in Dallas, Texas; Denver, Colorado; and Calgary, Alberta, Canada. Tenaska affiliates also market natural gas, electric power and biofuels, with Tenaska’s natural gas marketing affiliate ranked as one of the top 10 natural gas marketers in North America. Tenaska affiliates are also involved in private equity fund management, fuel supply, natural gas exploration and production and electric transmission development. For more information about Tenaska, visit the company’s Web site at www.tenaska.com.

FOR IMMEDIATE RELEASE:
Oct 08, 2009


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Permalink Reply by Les Bamburg on October 20, 2009 at 17:44

Kevin, please correct the title of your discussion.

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Permalink Reply by j garrett on October 21, 2009 at 13:20

This is great news. Infrastructure has been lacking in deep East Texas, at least in San Augustine County and Eastern Nacogdoches County. You can't produce without it. This bodes very well for us East Texans!

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Permalink Reply by JWC on October 22, 2009 at 0:00

Wonder how far into San Augustine County the line will run? Anyone have any idea?

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Permalink Reply by kevin jones on October 22, 2009 at 4:12

THATS A GOOD QUESTION I WOOD LIKE TO SEE THE SURVEYS OF WHAT THEY ARE GOING TO DO

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Permalink Reply by RBH on October 22, 2009 at 4:35

"A TCM affiliate is in the process of acquiring right-of-way"

Does anyone know name of the "TCM Affiliate" acquiring the right-of-ways--then would be able to tract where the 140-mile gathering system is

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