Crosstex is constructing a compressor station on an existing gathering line to accommodate the customer’s transportation requirements.
The project is scheduled to be completed and operational in the first quarter of 2011. Incremental investment required for the project is estimated to be less than $10m and the annual cash flow from the agreement is expected to be approximately $8m.
Barry Davis, president and CEO of Crosstex, said: “This agreement is a prime example of how our strategic position in the Barnett Shale adds value. We are able to make relatively low-cost, incremental investments that generate high returns and enhance the utilization of our core assets.
“We will continue to look for opportunities in North Texas where our operations are located in the heart of the Barnett Shale, one of the most significant shale plays in the US.”
