Regency cites Haynesville expansion progress

By OGJ editors
HOUSTON, Jan. 28 -- Regency Energy Partners LP, Dallas, said it has negotiated definitive agreements with shippers for 800 MMcfd or more than 70% of the capacity of its Haynesville gas pipeline expansion project in North Louisiana.

The company's existing system extends 320 miles from Waskom, Sligo, and Elm Grove fields near Shreveport to connections with interstate and intrastate pipelines near Winnsboro in Franklin Parish.

The agreements are for firm transportation capacity under 10-year contracts and are subject to conditions including final approval by Regency's board.

Regency said it is in advanced discussions with other shippers who have requested transport volumes that exceed the remaining capacity.

The company also said it has eliminated its obligation for the purchase of 28 miles of 24-in. pipe no longer needed for the revised 1.1 bcfd expansion.

The $650 million revised expansion calls for 128 miles of 36-42-in. pipe and 12,500 hp of compression.

The major milestone for the project is to finalize financing arrangements. Regency is working with GE Energy Financial Services to secure funding. If financing is obtained, the expansion is to be in service by the end of 2009.

Meanwhile, Regency is acquiring rights of way and environmental permits and clearances. A construction contractor is committed to the project, and 98% of the route has been selected and surveyed.

Regency has $230 million of purchase commitments related to the expansion.

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