Eagle Ford Gathering LLC, a 50/50 joint venture between Kinder Morgan Energy Partners, L.P. and Copano Energy, L.L.C., announced June 30 the execution of two long-term agreements to provide transportation, processing and fractionation services to Petrohawk Energy Corporation and Rosetta Resources Operating LP, an affiliate of Rosetta Resources Inc. two of the leading operators in the Eagle Ford Shale play in South Texas.
Eagle Ford Gathering has contracted with Petrohawk for up to 50,000 MMBtu per day of Eagle Ford Shale natural gas production from leases in LaSalle and McMullen Counties, Texas, and with Rosetta for up to 50,000 MMBtu per day of Eagle Ford Shale natural gas production from leases in Webb and Dimmit Counties, Texas. Each agreement has an approximate term of 10 years.
Duane Kokinda, president of Kinder Morgan’s Intrastate Pipeline Group, said, “With the addition of these two agreements, the joint venture has contracted for a total of 550,000 MMBtu per day of Eagle Ford Shale natural gas production. There continues to be strong interest from producers for additional capacity, and the joint venture is evaluating projects to expand its ability to handle natural gas from the Eagle Ford Shale play.”
“We are pleased to add Petrohawk and Rosetta to the growing number of producers who have selected Eagle Ford Gathering as a midstream provider,” said Jim Wade, President and Chief Operating Officer of Copano Energy’s Texas segment.
Eagle Ford Gathering’s previously announced 30-inch pipeline in the western Eagle Ford Shale play is under construction and is expected to begin service in the third quarter of 2011. After fully subscribing its initial processing capacity of 375,000 MMBtu per day at Copano’s Houston Central plant, the joint venture recently announced plans to construct 72 miles of additional pipelines and associated compression that will enable the joint venture to deliver Eagle Ford production to Formosa Hydrocarbons Company’s Point Comfort Plant and Williams Field Services’ Markham Plant for processing. These incremental pipelines and facilities, which are expected to be completed by year end, will enable the joint venture to more fully utilize the 600 MMcf per day capacity of its 30-inch line.