Processing Magazine

Energy Transfer Partners to construct gas pipeline with Chesapeake Energy

January 29, 2009
Energy Transfer Partners LP, which operates natural gas midstream and transportation and storage businesses, has struck an agreement with a subsidiary of Chesapeake Energy Corp., the nation''s largest natural gas producer, to construct a natural gas pipeline, a project estimated to cost between $1 billion and $1.2 billion, according to the Associated Press. ETP has agreed with Chesapeake Energy Marketing Inc. to construct a 178-mile, 42-inch interstate natural gas pipeline that will connect ETP''s pipeline system near Carthage, Texas, extend through the heart of the Haynesville Shale and end near Delhi, La., which interconnects to at least seven interstate pipelines at various points in Louisiana. The company expects the project, called the "Tiger Pipeline," to have an initial throughput capacity of at least 1.25 billion cubic feet per day, which could increase up to 2 billion cubic feet per day. The agreement with Chesapeake provides for a 15-year commitment for firm transportation capacity of approximately 1 billion cubic feet per day. ETP expects the project to be in service by mid-2011.