Kinder Morgan plans Eagle Ford shale pipeline project

Kinder Morgan Energy Partners LP and Copano Energy LLC signed a letter of intent to jointly provide gathering, transportation, and processing services in the Eagle Ford shale in South Texas.

Nov. 20, 2009

By OGJ editors
HOUSTON, Nov. 20 -- Kinder Morgan Energy Partners LP and Copano Energy LLC signed a letter of intent to jointly provide gathering, transportation, and processing services in the Eagle Ford shale in South Texas.

The Cretaceous Eagle Ford shale gas-condensate play involves drilling through depleted zones above it. Companies are drilling mile-long multilaterals there.

Kinder Morgan and Copano signed a letter of intent for a 50-50 joint venture, which initially plans to build a 22-mile, 24-in. gas gathering pipeline.

The line will originate in LaSalle County, Tex., and terminate in Duval County, Tex., and will have an initial capacity of 350 MMcfd. Construction is expected to be completed in midyear 2010.

The JV is subject to negotiating an extension of existing contracts between Copano and Kinder Morgan, including their processing and transportation agreements.

Copano of Houston is a midstream natural gas company with operations in Oklahoma, Texas, Wyoming, and Louisiana.