By OGJ editors
HOUSTON, Aug. 30 -- Crosstex Energy LP will invest $80 million to construct a 29-mile natural gas pipeline in Texas' north Johnson County to provide greater takeaway capacity to producers in the Barnett shale region of the western US.
"We are constructing the first large-diameter, low-pressure gathering lines into what is becoming the new heart of the Barnett shale," said Barry E. Davis, Crosstex president and chief executive officer.
The project will include 20-in. and 24-in. pipelines and three compressor stations totaling 36,000 hp.
The low-pressure and high-pressure gathering system will have an ultimate capacity of about 400 MMcfd when all phases of construction are completed, which is scheduled for second quarter 2008.
Initially, the pipeline will transport 80 MMcfd of gas and is scheduled to begin deliveries in the third quarter. Full capacity utilization is expected by 2009.
Crosstex has secured commitments from numerous gas producers to move gas through the new line. Some of the commitments are from major exploration and production companies that operate in the Barnett shale, including Chesapeake Energy Corp., the anchor shipper.