Construction of a major pipeline that will carry natural gas from the Haynesville Shale and Bossier Sands to markets across the United States is ahead of schedule and should be in service by Dec. 1, officials announced this week.
Energy Transfer Partners is seven months ahead of the original projected mid-2011 completion of the 175-mile Tiger Pipeline. The 42-inch interstate pipeline will have an initial capacity of 2 billion cubic feet per day.
Through a planned expansion project subject to Federal Energy Regulatory Commission approval, the ultimate capacity of the pipeline is expected to be 2.4 billion cubic feet per day, all sold under long-term contracts ranging from 10 to 15 years.
The pre-expansion project costs are expected to be approximately $1.01 billion, down $85 million from the most recent estimate of $1 billion and down $190 million from the original projection of $1.2 billion.
Work also is almost complete on a separate Fayette Express Pipeline, which has the same projected completion date. The 185-mile natural gas pipeline will serve the Fayetteville Shale producing region in Arkansas and will have the capacity to transport up to 2 billion cubic feet of natural gas per day.
"The early completion of these large-scale, interstate projects, coupled with the cost savings we were able to achieve, is an incredible accomplishment for our partnership," Lee Hanse, senior vice president of Energy Transfer's Interstate Pipeline Division, said in a prepared statement. "We are very proud to have two projects of this magnitude in service ahead of schedule and well below the original budget — Fayetteville 22 percent and Tiger 16 percent — particularly in light of significant cost overruns and delays experienced by other companies in constructing interstate pipelines in recent years."
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