Tenaska Capital Management To Build East Texas Gathering System

November 2009 Vol. 236 No. 11

Tenaska Capital Management, LLC (TCM), an affiliate of Tenaska Energy Inc., 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 MMcf/d, with an ultimate capacity of 800 MMcf/d 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.

Mike Latchem 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, TX, will be completed by mid 2010.