The company said that this expansion will back the increasing volumes of gas produced from the Haynesville shale for delivery into the Perryville Hub and to Carthage area delivery points.
Cy Zebot, senior vice president and chief commercial officer for CEGT, said: “Growing demand and expressions of interest due to prolific natural gas production volumes, as well as forecasts from the Haynesville area in north Louisiana and east Texas leads us to believe that there’s an opportunity to expand Line CP.
“Assuming adequate expressions of interest, we’re prepared to execute binding precedent agreements and seek necessary governmental authorizations to place expansion capacity into service as early as the fourth quarter of 2012.”
Potential expansion of Line CP could provide incremental supplies access to the interstate pipelines serving the Midwest and Northeast by utilizing CEGT’s Perryville Hub services where there could be inter-connectivity and direct access to new storage facilities being developed near the Perryville Hub and Delhi, Louisiana.
The expansion could also provide incremental supplies access to markets in the Southeast, through the Southeast Supply Header. Additionally, CEGT will evaluate options for deliveries and inter-connectivity of natural gas to Carthage, which will provide Haynesville shale producers access to Texas markets.
The specific facilities required will be a function of the location and volume level commitment of potential supply sources. Final pricing determinations will be based on the facility costs, the level of firm commitments and the amount of interest indicated in accessing downstream interstate pipelines.
