Regency Energy Plans To Build $44 Million Pipeline Extension Of Its Nexus Gas Gathering System In North Louisiana

Published: 11-Sep-2009

Regency Energy Partners LP (Regency Energy) is planning to build approximately $44 million pipeline extension of its Nexus gathering system situated in North Louisiana. The pipeline extension, called the Logansport expansion, will add about 300,000 MMcf/d of gathering capacity to the existing system. The expansion will increase the overall deliverability of the Nexus gathering system by adding about 17 miles of 20-inch pipe, as well as associated compression and dehydration facilities.

It will transport gas gathered by the Nexus gathering system to a 300,000 MMcf/d interconnect with CenterPoint Energy Gas Transmission’s Line CP.

“With the rapid growth in theHaynesville Shale, theLogansport expansion is intended to meet new gathering needs from our producer customers,” said Byron Kelley, chairman, president and chief executive officer of Regency Energy. “Once complete, the expanded Nexus Gathering System will be well positioned for future growth, as it is the first of several anticipated expansions on this gathering system.”

The $44 million Logansport expansion will be funded partially with proceeds from Regency Energy's recent private placement, with the remainder financed under the company's revolving credit facility. The contracts will contribute additional fee-based margins to its gathering and processing segment once the project comes online, which directly aligns with Regency Energy's growth strategy. Regency Energy has already kicked off construction efforts on the project, and completion is expected in early 2010.

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