This is good news.

TCM starts construction on East Texas gas gathering system

Published: Apr 28, 2010

Tenaska Capital Management to launch 1 bcf/d high capacity system

Tenaska Capital Management LLC (TCM) has started construction of TPF II East Texas Gathering LLC (ETG), a major high capacity natural gas gathering system with multi-market capacity to serve the Haynesville shale formation in East Texas.

Read more about Tenaska Capital Management's midstream expansion here.

TCM, manager of the $2.4 billion TPF II LP, a private equity fund, says the 110-mile, 24-inch system will have a design capacity of over 1 billion cubic feet (bcf) per day. The system will initiate gas deliveries by mid-2010.
The system will traverse the Texas portion of the Haynesville Shale gas producing formation in Nacogdoches, San Augustine, Sabine, Shelby and Panola Counties, an area where production requires significant additional pipeline capacity to provide adequate access to markets. ETG will interconnect with multiple pipelines in the region.

“This high capacity gathering pipeline will be a critical element serving shale gas producers in the region and 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.

“Shale gas plays are the focus of intense industry interest today, given the advanced technologies that are allowing production of gas that was previously unobtainable. The Haynesville formation has the capacity to be one of the most productive of the deep shale formations in the US,” he said.

“Our development of ETG has generated significant interest, and we have entered into agreements with multiple producers covering a material portion of the pipeline capacity,” said Smith. “We will be providing gathering services required by our producer customers with excellent flexibility to redeliver gas to key local and interstate markets in East Texas.”