Regency Energy Announces Expansion Of Gas Gathering System In Haynesville Shale, Louisiana

Published: 19-Nov-2009

Regency Energy Partners LP (Regency Energy) announced plans to construct Phase II of its expansion of its Logansport gathering system located in North Louisiana. This $40-million expansion will transport gas gathered from a producer’s dedicated acreage located within DeSoto Parish to Regency Energy's Logansport gathering system. The project also includes construction of an associated amine treating facility.

“Including this project, Regency Energy and the Haynesville Joint Venture will have approximately $790 million invested in gathering and transportation projects in the Haynesville Shale to meet producers’ demands in this prominent play,” said Byron Kelley, chairman, president and chief executive officer of Regency Energy. “This fee-based project further strengthens our position in the Haynesville Shale, which is a key component of our growth strategy.”

Regency Energy will install 4.5 miles of 10-inch gathering lines, route 7.5 miles of 12-inch pipe through more than 17 sections of dedicated acreage in DeSoto Parish, and will add about 3.2 miles of 24-inch pipe to connect into Regency Energy's 24-inch Logansport Phase I expansion. Regency Energy will also install a gas treating facility with capacity of up to 300 MMcf/d. Construction is expected to begin in early December 2009 with completion targeted for second quarter 2010.

In addition to its Phase II expansion, Regency Energy is increasing the diameter of the previously announced 20-inch, 17-mile Logansport expansion pipeline to 24 inches. The Logansport expansion pipeline will interconnect with CenterPoint Energy Gas Transmission’s Line CP. This will provide Regency Energy's Logansport system with approximately 450 MMcf/d to 485 MMcf/d of capacity along the corridor that crosses the Gulf South East Texas Lateral, as well as the proposed Energy Transfer Tiger Pipeline. Regency Energy also is in the process of increasing the Logansport System’s incremental interconnect delivery capacities to Tennessee Gas Pipeline and to Louisiana Intrastate Gas by approximately 100 MMcf/d and 30 MMcf/d, respectively.

“We are pleased to implement a solution that provides both needed takeaway capacity and also the potential to further expand Regency Energy's gathering capabilities for production within the surrounding areas of Logansport and DeSoto Parish,” said Kelley.

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