Crosstex to expand Barnett gas pipeline capacity

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, July 27 -- Crosstex Energy LP and Crosstex Energy Inc. announced plans to expand the natural gas gathering system serving the Barnett shale play in North Texas by building a $25 million, 15-mile pipeline.

The project, which is supported by volumetric commitments, includes a 7-mile low-pressure pipeline, an 8-mile high-pressure pipeline, and a compressor station in southwest Tarrant County.

The Crosstex companies expect peak flow of the new gathering system, to be operational first-quarter 2011, to reach 100 MMcfd in 2012.

Wood Mackenzie Ltd. recently voiced its expectation that low-cost unconventional gas plays such as Barnett will continue to grow for the time being, joined within a few years by more-expensive shale and tight-gas supplies as demand growth accelerates (OGJ Online, July 9, 2010).

Contact Christopher E. Smith at chriss@ogjonline.com.

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