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Enbridge To Expand Its East Texas Natural Gas System

Posted on: Tuesday, 4 April 2006, 06:00 CDT

By Anonymous

Enbridge Energy Partners, L.P. confirmed it has received customer commitments to support construction of a $530 million expansion and extension of its East Texas natural gas system. The project is required to handle the strong growth occurring in East Texas natural gas production, particularly from the Bossier Sands and other regional producing formations. Key components of the project, which will all be located in Texas, include:

A 219-mile, 36-inch intrastate pipeline with capacity of approximately 700 MMcf/d that will be completed in stages throughout 2007. The new line from Bethel to Orange County will provide service to a number of major industrial and power companies in southeast Texas and will cross a number of interstate pipelines.

* A 250 MMcf/d treating facility, to be built near Marquez, will be connected to the 36-inch pipe via a new 50-mile, 24-inch pipeline that will be completed in early 2007.

* A number of upstream facilities, including gathering pipelines to tie existing facilities into the new intrastate pipeline, also will be completed in early 2007.

Dan C. Tutcher, president of the Partnership's management company and general partner, said the extension and expansion is a significant step toward avoiding shut-in of gas production that would result from insufficient capacity. "Increasing market options for customers is our ongoing priority; therefore, this project is designed to be expandable and is positioned for potential upstream and downstream extension."

Since early 2002, throughput on the Partnership's East Texas System has grown from approximately 550 to 900 MMcf/d. The Partnership's reserve studies indicate that production in areas served by its existing and new facilities will continue to increase into the next decade.

In support of growing natural gas production in East Texas, the Partnership completed a 500 MMcf/d transmission pipeline in mid- 2005 to provide increased access from Bethel to the Carthage hub. This service is expected to be at capacity by mid-2006, thereby driving the need to develop additional access to natural gas markets, such as afforded by this new extension and expansion of the East Texas system.

Copyright Oildom Publishing Company of Texas, Inc. Mar 2006

Source: Pipeline & Gas Journal

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