Crosstex Energy, L.P. on Tuesday announced the start-up of its $90 million pipeline expansion in northern Louisiana, which initially adds capacity of 200 million cubic feet of gas per day (MMcf/d) to Crosstex's existing Louisiana Intrastate Gas pipeline system (LIG), the state's largest intrastate pipeline network. The new pipeline has commitments to utilize the initial 200 MMcf/d as of its April 1 initial flow date. Crosstex has the option to increase capacity up to 240 MMcf/d.
The pipeline expansion adds 72 miles to Crosstex's approximately 2,000-mile LIG system and includes 63 miles of 24-inch pipeline and nine miles of 16-inch pipeline, traversing three parishes.
"As a result of the region's dramatically higher production, the takeaway capacity from the area has become insufficient," said Barry E. Davis, Crosstex President and Chief Executive Officer. "Our new pipeline will prove to be an attractive outlet for this increased production. In order to provide access to new markets, Crosstex's pipeline expansion will add new interconnects and expand existing interconnects, including ANR, Texas Gas, Trunkline and Columbia Gulf. In addition, this expansion will provide Crosstex with access to prolific North Louisiana gas production to supply our existing intrastate markets."
Crosstex Energy, L.P., a midstream natural gas company headquartered in Dallas, operates over 5,000 miles of pipeline, 12 processing plants, four fractionators, and approximately 160 natural gas amine-treating plants in service and approximately 35 dew point control plants. Crosstex currently provides services for over 3.0 Bcf/day of natural gas, or approximately 6.0 percent of marketed U.S. daily production based on August 2006 Department of Energy data.
Crosstex Energy, Inc., owns the two-percent general partner interest, a 42- percent limited partner interest, and the incentive distribution rights of Crosstex Energy, L.P.