TETCO LEASES ARKLA CAPACITY

Texas Eastern Transmission Corp. has agreed to lease 250 MMcfd of capacity on Arkla Inc.'s AC pipeline system from the Arkoma basin in Arkansas and Oklahoma to Shaw, Miss. The 10 year lease has options to extend the term to 15 years and to expand the volume to 500 MMcfd. Under the agreement, Arkla plans to lay an 82 mile, 30 in. pipeline extension to connect the AC line near Glendale, Ark., with proposed Tetco facilities near Shaw. Target date for moving gas is 1993.

Sept. 23, 1991

Texas Eastern Transmission Corp. has agreed to lease 250 MMcfd of capacity on Arkla Inc.'s AC pipeline system from the Arkoma basin in Arkansas and Oklahoma to Shaw, Miss.

The 10 year lease has options to extend the term to 15 years and to expand the volume to 500 MMcfd.

Under the agreement, Arkla plans to lay an 82 mile, 30 in. pipeline extension to connect the AC line near Glendale, Ark., with proposed Tetco facilities near Shaw. Target date for moving gas is 1993.

Tetco said access to the Arkoma and Anadarko basins will increase its access to gas resources by 50% because the basins are estimated to about 90 tcf of reserves. That's about half of the estimated gas resources in the company's traditional supply areas.

Federal Energy Regulatory Commission approval of the agreement will give Tetco and its customers an alternative to the $273 million, 353 mile pipeline through the Arkoma basin proposed by the Oklahoma-Arkansas Pipeline Co. partnership (OGJ, Sept. 3, 1990, p. 22), of which Tetco is a member.