Regency Energy Partners, Alinda Capital Partners LLC and an affiliate of GE Energy Financial Services announced that construction of the Haynesville Expansion Project has been completed and that they are currently completing testing and commissioning. The 121-mile Haynesville Expansion Project in North Louisiana, expected to be completed under budget, will transport gas from the Haynesville Shale, one of the fastest growing U.S. natural gas fields.
"The 36-inch portion of the pipe flowed its first receipt gas in November 2009, and the 42-inch portion of the pipe on the eastern end of the system will be ready for service and flowing gas within the next two weeks," said Byron Kelley, chairman, president and chief executive officer of Regency.
"I am pleased with the collaboration, dedication and creative thinking of our construction team and contractors, who have brought construction of the project to a successful completion despite many challenges, including mother nature," continued Kelley.
The Haynesville Expansion Project, in conjunction with the Red River Lateral, more than doubles the Regency Intrastate Gas System ("RIGS") in North Louisiana by adding approximately 1.2 Bcf/d of capacity to the system. The 1.1 Bcf/d Haynesville Expansion Project consists of the 25-mile, 36-inch Bienville Loop; the 21-mile, 36-inch Elm Grove Pipeline and the 75-mile, 42-inch Winnsboro Loop; as well as 14,200 horsepower of compression at the Elm Grove and Haughton Stations. The Red River Lateral adds approximately 12.5 miles of 36-inch pipe and approximately 100,000 MMbtu/d of capacity to the system. Both projects are expected to be ready for service and flowing gas concurrently.
The Haynesville Expansion Project and the Red River Lateral are underwritten by firm transportation agreements with 10-year terms, and approximately 85 percent of projected revenues will come from reservation fees.
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