Enterprise Products Partners has announced that its affiliates have signed new long-term agreements with producers in the Barnett Shale region that will utilize approximately 900 million cubic feet per day of capacity on the partnership's 1.1 billion cubic feet per day Sherman Extension natural gas pipeline.

The partnership also announced that it will construct a pipeline that will transport new supplies of natural gas produced from the Barnett Shale in Tarrant and Denton counties, Texas to the Sherman Extension pipeline.

The 178-mile Sherman Extension is a key expansion of Enterprise’s Texas intrastate natural gas pipeline system that provides additional transportation capacity for production from the Barnett Shale and north Texas region. The Sherman Extension traverses from an interconnect with a key pipeline segment of Enterprise’s Texas intrastate system in Erath County, Texas to Grayson County, Texas, where it will connect to the Gulf Crossing interstate pipeline.

Producers can utilize the Sherman Extension to reach natural gas markets in the southeast US and to markets in the Midwest and Northeast through connections with other interstate pipelines. Producers can also utilize the Sherman Extension to access Texas markets and, through connections with interstate pipelines, to natural gas markets in the western US. The Sherman Extension is expected to be completed in the fourth quarter of 2008.

To accommodate growing natural gas production from the Barnett Shale, Enterprise will build a new 40-mile supply lateral that will extend from the Trinity River Basin north of Arlington to an interconnect with the Sherman Extension pipeline near Justin, Texas. The new pipeline will consist of 30-inch and 36-inch diameter pipeline designed to provide up to one billion cubic feet per day of natural gas takeaway capacity for producers in Tarrant and Denton counties.

The new pipeline will also have a lateral to provide transportation services for natural gas produced from the Newark East field in Wise County. These new pipelines are anchored by long-term agreements with major producers and are expected to be in service in the third quarter of 2009, said Enterprise Products.