Christopher E. Smith
Pipeline Editor
HOUSTON, Aug. 28 -- Affiliates of Enterprise Products Partners LP have signed long-term agreements with major Barnett shale natural gas producers for about 900 MMcfd on its 1.1 bcfd-capacity Sherman Extension pipeline. Enterprise also will construct a pipeline to move gas supplies produced from Barnett shale wells in Tarrant and Denton Counties, Tex., to the Sherman Extension pipeline.
The 178-mile Sherman Extension runs from an interconnect with Enterprise's Texas intrastate system in Erath County, Tex., to Grayson County, Tex., where it will connect to Boardwalk's Gulf Crossing interstate pipeline. Devon had been the primary capacity holder on the Sherman Extension under previous agreements. Enterprise has the option to acquire as much as a 49% interest in Gulf Crossing (OGJ, May 12, 2008, p. 55).
Enterprise also will build a 40-mile supply lateral from the Trinity River basin north of Arlington to an interconnect with the Sherman Extension near Justin, Tex. The new pipeline will consist of 30-in. and 36-in. pipe designed to provide as much as 1 bcfd of gas takeaway capacity for producers in Tarrant and Denton counties. The line also will have a lateral for gas produced from the Newark East field in Wise County. Long-term agreements with major producers are in place to anchor these lines, which are expected to be in service in third quarter 2009.
Enterprise completed a 42-mile section of the Sherman Extension from Erath County to Parker County, Tex., in August and commenced interim transportation service on it to markets utilizing Enterprise's Texas intrastate system.
Contact Christopher E. Smith at [email protected].