Energy Transfer Announces Expansion Of Its Eagle Ford Shale Projects

May 2011, Vol. 238 No. 5

Energy Transfer Partners, L.P. has entered into long-term fee-based agreements with multiple producers, including Rosetta Resources Operating LP, SM Energy Co., and a subsidiary of Anadarko Petroleum Corp., to provide natural gas gathering, processing, and liquids services from the Eagle Ford Shale.

To facilitate these agreements, which include volume commitments in excess of 540,000 MMBtu/d of natural gas, ETP will significantly expand the previously announced Rich Eagle Ford Mainline (REM) pipeline in South Texas and will construct a processing facility in Jackson County, TX.

The REM pipeline expansion, which will extend from the Partnership’s Chisholm Pipeline in DeWitt County east into Jackson County, will add 70 miles of 36-inch pipe to the initial 160-mile, 30-inch REM pipeline that was announced in February. When fully constructed, the Partnership’s REM pipeline will consist of 230 miles of 30-inch and 36-inch pipe with a capacity of at least 600 MMcf/d. Completion of the initial phase of REM remains scheduled for the fourth quarter and completion of the REM expansion is scheduled for early 2013.

The Jackson County gas processing plant will have 600 MMcf/d of capacity and can be expanded to 800 MMcf/d. The plant is scheduled for completion in early 2013. Total cost of the REM expansion and Jackson County processing facility are expected to be $450 million.

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