CenterPoint to expand gathering, treating in Haynesville

Warren R. True
OGJ Chief Technology Editor—LNG/Gas Processing

HOUSTON, May 3--CenterPoint Energy Field Services Inc., Houston, will add more gathering and treating for Haynesville shale gas production being developed by subsidiaries of Encana and Shell.

The 250-MMcfd expansion on the company’s Magnolia system, announced last week, along with 750 MMcfd announced in September 2009 and currently under construction, will add 1 bcfd covered under long-term agreements executed in September 2009 between CenterPoint Field Services and those subsidiaries.

The agreements are with Encana Oil & Gas (USA) Inc., an indirect, wholly-owned subsidiary of Encana Corp., and SWEPI LP, an indirect wholly-owned subsidiary of Royal Dutch Shell PLC.

CenterPoint Field Services’ announcement cited 200 MMcfd and its 2009 announcement 700 MMcfd. Responding to questions from OGJ, however, CenterPoint Field Services’ Kerri Selsor, vice-president of engineering and construction, revised those target volumes to actual volumes of 250 MMcfd and 750 MMcfd.

Fivefold increase
The company’s total gathering and treating for DeSota and Red River parishes will reach 1.2 bcfd when all expansions are in service by mid-2011.

CenterPoint estimates the cost for the 250 MMcfd expansion will be $50-$70 million and includes 1,000 gpm of amine treating at the company’s Magnolia plant, an additional 5 miles looping, and about 8,000 hp at its Hall Summit compressor station, all on the east side of the Red River.

As part of expansion announced in September 2009, CenterPoint Field Services is installing about 25 miles of pipe east of the Red River and another 30 miles on the west side, also in Red River Parish.

The work is also installing about 3,000 gpm of additional amine treating for the 750 MMcfd incremental volumes: 2,000 gpm at the Magnolia plant east of the river and 1,000 gpm at CenterPoint Field Services Clear Lake plant west of the river. All the work is in Red River parish.

And the project announced last year is installing about 30,000 hp of additional compression, 20,000 hp at the Hall Summit station east of the river, and 10,000 hp at the Clear Lake plant on the west side.

CenterPoint’s latest announcement said construction of the 750 MMcfd is running ahead of schedule with “substantial volumes flowing” and will be in service be yearend.

CenterPoint Field Services is an indirect, wholly-owned gathering and treating unit of CenterPoint Energy Inc., Houston. It gathers and processes about 1.6 bcfd and holds more than 400 MMcfd of processing capacity throughout its gathering system, directly or through its 50% interest joint venture with Martin Midstream Partners LP, Kilgore, Tex., in the Waskom Gas Processing Co.

It owns and operates about 3,800 miles of gathering pipelines and processing plants that collect, treat, and process natural gas from about 150 separate systems in major producing fields in Arkansas, Louisiana, Oklahoma, and Texas.

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