Energy Transfer has entered into a binding 10-year agreement with the expansion’s foundation shipper for 400 million cubic feet per day of capacity, bringing the pipeline’s long-term contractual commitments to 2.4 billion cubic feet per day.
The company will launch a binding open season later this month to solicit additional shipper interest in the pipeline expansion. Ultimate capacity of the expansion will be based upon producer response.
Lee Hanse, senior vice president of interstate division at Energy Transfer, said: “We are pleased to have this opportunity to expand the Tiger Pipeline. This long-term commitment, coupled with additional interest from other producers in the area, reinforces the need for this expansion project.
“The Tiger Pipeline system will further extend Energy Transfer’s expansive natural gas pipeline network, which provides shippers with unprecedented access from production basins to markets throughout the country.”
The approximately 180-mile 42-inch Tiger natural gas pipeline system will serve the Haynesville shale producing region in Louisiana and the Carthage hub area in East Texas and will have interconnects with seven interstate pipelines serving the eastern half of the US.
The pipeline is expected to be in service in the first half of 2011, and the expansion is expected to be completed in the second half of 2011. The construction of the pipeline and expansion project are subject to receipt of approval from the Federal Energy Regulatory Commission.
