Pipeline To Handle Haynesville Shale Production Planned

February 2010 Vol. 237 No. 2

An indirect wholly owned pipeline subsidiary of CenterPoint Energy Inc. and NextEra US Gas Assets LLC, an affiliate of FPL Group, Inc., signed a joint development agreement to explore construction of a pipeline in north Louisiana to transport natural gas from the Haynesville Shale.

The capacity of the proposed 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 interest in an upcoming open season and management approval from both companies, a joint venture entity will be formed to 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 new pipeline. CenterPoint Energy’s pipeline group would design and ultimately operate the new pipeline.