Energy Transfer Partners LP (ETP) announced it has entered into multiple long-term agreements with shippers to provide additional transportation services from the Eagle Ford Shale located in South Texas, USA. To facilitate these agreements, ETP will construct a natural gas pipeline, a processing plant and additional facilities at an approximate cost of US$ 300 million. These projects will expand the partnership鈥檚 extensive midstream infrastructure in the Eagle Ford, which includes the recently completed Dos Hermanas Pipeline and the Chisholm Pipeline that is scheduled for completion in the second quarter of 2011.
鈥淭he pipeline is a significant organic growth project for our Partnership and represents another major step toward our goal of becoming a major player in the rich Eagle Ford play. The REM project will also add value to our existing downstream infrastructure.鈥�
The 160 mile, 30 in. Rich Eagle Ford Mainline (REM) will have a capacity of 400 million ft3/d, with the ability to expand capacity to 800 million ft3/d. This rich gas gathering system, which is expected to be in service by the fourth quarter of 2011, will originate in Dimmitt County, Texas, USA, and extend to the Partnership鈥檚 Chisholm Pipeline for ultimate deliveries to the Partnership鈥檚 existing processing plants and to a new processing plant.
鈥淭he development of the REM is exciting for both our Partnership and producers in the Eagle Ford Shale who need this additional take away capacity,鈥� said Tim Dahlstrom, Energy Transfer鈥檚 Senior Vice President. 鈥淭he pipeline is a significant organic growth project for our partnership and represents another major step toward our goal of becoming a major player in the rich Eagle Ford play. The REM project will also add value to our existing downstream infrastructure.鈥�