Enterprise Products Partners L.P. (NYSE:EPD) and Duncan Energy Partners L.P. (NYSE:DEP) today announced plans for their jointly-owned Acadian Gas LLC subsidiary to extend its Louisiana intrastate natural gas pipeline system into Northwest Louisiana to provide producers in the rapidly expanding Haynesville Shale play with access to attractive markets through connections with Acadian''s existing 1,000-mile pipeline system in South Louisiana and nine major interstate pipelines. Known as the Haynesville Extension, this project, as currently designed, will have the capacity to transport up to 1.4 billion cubic feet per day (Bcf/d) from the Haynesville area through a 249-mile, 36-inch and 30-inch diameter pipeline that will connect to Acadian''s existing system as well as its affiliated Cypress Gas Pipeline. If additional long-term commitments are received before pipe orders are placed within the next week, the capacity of the Haynesville Extension could be increased to 2.0 Bcf/d. The pipeline is expected to be in service in September 2011.
The existing Acadian natural gas pipeline system has access to more than 150 end-use markets along the Mississippi River corridor between Baton Rouge and New Orleans, includes a rapid-cycle salt dome storage cavern and has the ability to make physical deliveries into the Henry Hub. The Haynesville Extension project will have two interconnects to the existing Acadian system in Pointe Coupee and Assumption parishes and will have two interconnections to the Cypress system in Pointe Coupee and West Baton Rouge parishes. The Haynesville Extension will also have interconnects with Florida Gas, Texas Eastern, Transco, Sonat, Columbia Gulf, Trunkline, ANR, Tennessee Gas and Texas Gas. Together with the capacity into the existing Acadian systems, the extension project will provide approximately 5.5 Bcf/d of meter capacity into an estimated 12 Bcf/d of available downstream pipeline takeaway capacity. Initially, the project will connect to nine Haynesville Shale producer locations in DeSoto and Red River parishes. As part of the project, Acadian expects to construct two compressor stations with approximately 67,000 combined horsepower.
“We are excited to announce our Haynesville Extension project,” said Richard H. Bachmann, president and chief executive officer of the general partner of Duncan Energy Partners. “By leveraging our existing Acadian system, we will be able to provide Haynesville producers with much needed takeaway capacity in a timely manner. In addition, we believe the Haynesville Extension will give shippers more flexibility and market access to manage and maximize the value of their production.”
Along with much needed takeaway capacity for growing Haynesville production, the new pipeline is expected to give shippers the opportunity to benefit from more favorable pricing points and diverse service options and access to the South Louisiana marketplace. For producers, the more flexible contracting options associated with an intrastate environment would help facilitate a seamless transaction for the producer from field to end-user.
Michael A. Creel, president and chief executive officer of Enterprise, stated, “Enterprise''s integrated midstream system already touches over 10 Bcf/d of natural gas, or approximately 17 percent of U.S. demand. The expansion of the Acadian system provides our partnership with another major foothold in a significant non-conventional natural gas producing area. In addition to the Haynesville, we have major midstream positions in the Jonah/Pinedale, Piceance, Barnett, Eagle Ford and Marcellus regions.”
The Haynesville Shale covers about 2 million acres in Northwest Louisiana, almost all of which is under lease. Production from the approximately 200 wells drilled to date is estimated at more than 1 Bcf/d. Over 400 locations are in various stages of drilling and completion with 150 rigs now working in the region.
Acadian Gas, LLC is 66 percent owned by Duncan Energy Partners and 34 percent owned by Enterprise Products Partners. Enterprise Products Partners is the parent of Duncan Energy Partners and currently owns approximately 52 percent of the outstanding common units of DEP, in addition to significant direct equity interests in each of Duncan Energy''s subsidiaries.
Enterprise Products Partners L.P. is the largest publicly traded partnership and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. The partnership''s assets include: more than 48,000 miles of onshore and offshore pipelines; approximately 200 million barrels of storage capacity for NGLs, refined products and crude oil; and 27 billion cubic feet of natural gas storage capacity. Services include: natural gas transportation, gathering, processing and storage; NGL fractionation (or separation), transportation, storage, and import and export terminaling; crude oil and refined products storage, transportation and terminaling; offshore production platform; petrochemical transportation and storage; and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems and in the Gulf of Mexico. For additional information visit www.epplp.com. Enterprise Products Partners L.P. is managed by its general partner, Enterprise Products GP LLC, which is wholly owned by Enterprise GP Holdings L.P. (NYSE:EPE). For more information on Enterprise GP Holdings L.P., visit www.enterprisegp.com.
Duncan Energy Partners is a publicly traded partnership that provides midstream energy services, including gathering, transportation, marketing and storage of natural gas, in addition to NGL fractionation (or separation), transportation and storage and petrochemical transportation and storage. Duncan Energy Partners owns interests in assets located primarily in Texas and Louisiana, including interests in approximately 9,200 miles of natural gas pipelines with a transportation capacity aggregating approximately 6.8 billion cubic feet (“Bcf”) per day; more than 1,600 miles of NGL and petrochemical pipelines featuring access to the world''s largest fractionation complex at Mont Belvieu, Texas; two NGL fractionation facilities located in south Texas; approximately 18 million barrels (“MMBbls”) of leased NGL storage capacity; 8.5 Bcf of leased natural gas storage capacity; and 34 underground salt dome caverns with more than 100 MMBbls of NGL storage capacity at Mont Belvieu. Duncan Energy Partners is managed by its general partner, DEP Holdings, LLC, which is a wholly-owned subsidiary of Enterprise. Additional information about Duncan Energy Partners is available online at www.deplp.com.
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Enterprise Products Partners L.P.
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Randy
Burkhalter, (713) 381-6812 or (866) 230-0745
or
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Relations
Rick Rainey, (713) 381-3635
