An indirect wholly owned pipeline subsidiary of CenterPoint Energy Inc. and NextEra US Gas Assets LLC, an affiliate of FPL Group, Inc., have signed a joint development agreement to explore construction of a pipeline in north Louisiana to transport natural gas from the Haynesville Shale area. An open season will gauge market interest in the proposed pipeline.
The capacity of the potential pipeline would be up to 2 Bcf/d and would connect Haynesville Shale natural gas production to markets in north Louisiana and CenterPoint Energy’s Perryville Hub.
Assuming adequate expressions of interest are received and management approval from both companies, a joint venture entity will be formed that would execute binding precedent agreements and seek necessary regulatory approvals to place the pipeline into service as quickly as possible. Each company would own an equal equity interest in the pipeline. CenterPoint Energy’s pipeline group would design and oversee construction, and ultimately operate the line.