Energy Transfer Partners, L.P. announced April 21 that it has entered into long-term fee-based agreements with multiple producers, including Rosetta Resources Operating LP, SM Energy Company, and a subsidiary of Anadarko Petroleum Corporation to provide natural gas gathering, processing, and liquids services from the prolific Eagle Ford Shale.
To facilitate these agreements, which include volume commitments in excess of 540,000 MMBtu per day of natural gas, ETP will significantly expand the previously announced Rich Eagle Ford Mainline (REM) pipeline in South Texas and will construct a new processing facility in Jackson County, Texas.
The REM pipeline expansion, which will extend from the Partnership’s Chisholm Pipeline in DeWitt County east into Jackson County, Texas, will add roughly 70 miles of 36-inch pipe to the initial 160-mile, 30-inch REM pipeline that was announced in February 2011. When fully constructed, the Partnership’s REM pipeline will consist of approximately 230 miles of 30-inch and 36-inch pipe with a capacity of at least 600 million cubic feet per day (MMcf/d). Completion of the initial phase of REM remains scheduled for the fourth quarter of 2011 and completion of the REM expansion is scheduled for the first quarter of 2013.
The Jackson County gas processing plant will have approximately 600 MMcf/d of capacity and can be expanded to 800 MMcf/d. The plant is scheduled for completion in the first quarter of 2013. Total cost of the REM expansion and Jackson County processing facility are expected to be approximately $450 million.
“The REM expansion will materially increase the Partnership’s extensive midstream infrastructure in the Eagle Ford,” said Brian Beebe, Energy Transfer’s senior vice president. “Along with our recently completed Dos Hermanas Pipeline, the Chisholm Pipeline scheduled for completion in the second quarter of 2011, and the recently announced acquisition of LDH Energy Asset Holdings, the Partnership’s ability to provide its shippers with the full array of gas transportation, processing and NGL handling services demonstrates our commitment to deliver the services desired by our customers for Eagle Ford Shale development.”