Christopher E. Smith
HOUSTON, Oct. 1 -- Kinder Morgan Energy Partners LP (KMP) and Energy Transfer Partners LP (ETP) announced a 50:50 joint venture, Fayetteville Express Pipeline LLC, to develop a new 187-mile, 2-bcfd pipeline intended to increase takeaway capacity from the Fayetteville shale.
The pipeline will start in Conway County, Ark., continue eastward through White County, Ark., and terminate at an interconnection with Trunkline Gas Co., in Quitman County, Miss.
Kinder Morgan and ETP expect the estimated $1.3 billion pipeline to be in service by late 2010 or early 2011. Fayetteville Express has secured binding 10-year commitments totaling 1.575 bcfd, including 1.2 bcfd from Southwestern Energy Services and 375 MMcfdwith an option for an additional 125 MMcfdfrom Chesapeake Energy Marketing Inc.
Chesapeake's parent company Chesapeake Energy Corp. reached agreement with BP America in September to establish a joint venture in the Fayetteville shale to produce 180 MMcfd (OGJ, Sept. 8, 2008, p. 29).
Fayetteville Express will also interconnect with Natural Gas Pipeline Co. of America in White County, Ark.; Texas Gas Transmission in Coahoma County, Miss.; and ANR Pipeline Co. in Quitman County, Miss. NGPL is operated and partially owned by Knight Inc. Knight owns the general partner of KMP.
Fayetteville Express will hold a binding open season beginning Oct. 8 and ending Nov. 7. Capacity on the proposed pipeline may be increased if a sufficient increase need is expressed during the open season.