Regency Energy Partners, GE Energy Financial Services and Alinda Capital Partners announced Jan. 27 that their joint ventures the Haynesville Expansion Project and Red River Lateral are in service.
The Haynesville Expansion Project and the Red River Lateral increase the total pipeline capacity of the Regency Intrastate Gas System (RIGS) to approximately 2.1 Bcf/d.
“The Haynesville Expansion Project was specifically constructed to provide much-needed takeaway capacity for Haynesville Shale gas in North Louisiana and is the first major project to be placed in service in the region,” said Byron Kelley, chairman, president and chief executive officer of Regency. “We continue to see impressive drilling results in the Haynesville Shale, and the Joint Venture is evaluating additional expansions to RIGS, which we believe is well positioned for future growth in the region.”
The Haynesville Expansion Project and the Red River Lateral are underwritten by firm transportation agreements with 10-year terms, and approximately 85 percent of projected revenues are expected to come from reservation fees. RIGS will begin charging shippers for reservation fees commencing February 1, 2010.