Copano Energy LLC will extend its wholly-owned 96-mile, 24-in. OD DK natural gas pipeline in the Eagle Ford shale by adding about 65 miles of pipe southwest into McMullen County, Tex. The pipeline extension will follow the same route as Copano's recently announced condensate pipeline, Double Eagle Pipeline LLC, a joint venture with Magellan Midstream Partners LP, in the rich gas window of the Eagle Ford shale.
A new long-term agreement with Petrohawk Energy Corp., a subsidiary of BHP Billiton, supports the extension. Under the terms of the fee-based agreement, Copano will provide Petrohawk with gathering, processing, and NGL handling services for what it describes as a significant commitment of natural gas volumes from McMullen County leases.
Copano expects the DK Pipeline extension to begin service first-half 2013 at a cost of $120 million.
Eagle Ford Gathering LLC, a 50-50 joint venture of Kinder Morgan Energy Partners LP and Copano Energy LLC, last year reached a long-term agreement with Williams Partners LP to process an initial 100 MMcfd of Eagle Ford shale gas at Williams Partners' Markham processing plant in Matagorda County, Tex. (OGJ Online, June 17, 2011). Eagle Ford Gathering’s pipeline runs through McMullen, LaSalle, Dimmit, and Webb counties.