Sep 10, 2009
Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, Sept. 10 -- Energy Transfer Partners LP has entered into a 10-year contract with a shipper to transport 300 MMcfd of natural gas on its Tiger Pipeline system, bringing total capacity commitments on the proposed line to not less than 1.8 bcfd. The new capacity commitment is in addition to previously announced agreements including a 10-year contract with EnCana Marketing (USA) Inc. and a 15-year contract with Chesapeake Energy Marketing Inc. for 1 bcfd.

ETP said the new volume commitment further demonstrates the need for additional pipeline capacity out of the Haynesville shale.

ETP also filed an application with the US Federal Energy Regulatory Commission on Aug. 31 requesting a certificate of public convenience and necessity authorizing construction and operation of the 180-mile pipeline. Pending necessary regulatory approvals, ETP intends to start construction the line by June 2010 and have it in service in the first half of 2011.

The Tiger system will extend from ETP’s dual 42-in. pipeline system near Carthage, Tex., through the Haynesville shale to near Delhi, La., with interconnects to at least seven interstate pipelines at various points in Louisiana that serving the Northeast, Southeast, Mid-Atlantic, and Midwest. The pipeline will have an initial throughput capacity of 2 bcfd, which may be increased to up to 2.4 bcfd with added compression.

ETP completed construction of the 160-mile Texas Independence Pipeline in late August, increasing its gas takeaway capacity in Texas by an incremental 1.1 bcfd. TIP runs between Maypearl and Henderson, Tex. (OGJ Newsletter, Sept. 7, 2009).


Buck