Regency Energy Partners Announces Two Pipeline Extensions

November 2009 Vol. 236 No. 11

Regency Energy Partners LP has announced construction of two pipeline expansions to accommodate Haynesville Shale production.

The first involves a $44 million pipeline extension of Regency’s Nexus Gathering System in North Louisiana. The Logansport Expansion will add 300 MMcf/d of gathering capacity to the existing system. This will increase the overall deliverability of the Nexus Gathering System by adding 17 miles of 20-inch pipe as well as associated compression and dehydration facilities. It will provide gathering customers with additional high-value takeaway options in DeSoto Parish, LA and Shelby County, TX – areas experiencing significant drilling activity – and expand Regency’s presence in the Haynesville Shale.
The Logansport Expansion will transport gas gathered by the Nexus Gathering System to an interconnect with CenterPoint Energy Gas Transmission’s Line CP.

Price Gregory recently kicked off construction efforts on the project, and completion is expected in early 2010.

In other news, Regency Energy Partners LP, Alinda Capital Partners LLC and GE Energy Financial Services plan to build a $47 million pipeline extension of the Haynesville Expansion Project in North Louisiana to increase capacity on the Regency Intrastate Gas System (RIGS). The extension – called the Red River Lateral – will add 100,000 MMbtu of capacity to the current project, bringing the total project capacity to 1.2 Bcf/d.

The Red River Lateral, also to be built by Price Gregory, will add 12.5 miles of 36-inch pipe to the Haynesville Expansion Project and will reach further southwest to the west side of the Red River into Red River Parish, LA, an area considered to be one of the richest in the Haynesville Shale. With the exception of a small amount of the capacity reserved for operational flexibility, the 1.2 Bcf/d of capacity is fully subscribed.