The JV will provide more than 200,000mmbtu per day of incremental gathering and processing capacity to producers in the Eagle Ford Shale through construction of additional pipeline facilities and a long-term agreement with Formosa Hydrocarbons Company for additional processing and fractionation services.
In addition to 111 miles of pipeline currently under construction, the JV will build a 54-mile, 24-inch diameter crossover pipeline between existing Kinder Morgan pipelines and an additional 20-mile, 20-inch diameter pipeline that will enable the JV to deliver gas to Formosa.
Kinder Morgan will construct and operate the two additional pipelines, while Formosa agreed to support the JV’s gas processing and fractionation needs and expand operational flexibility.
Kinder Morgan and Copano will construct the crossover pipeline and related facilities with an investment of approximately $100m, and the new facilities are expected to be completed by year-end 2011.
The JV’s 30-inch pipeline in the western portion of the shale play is under construction and remains on schedule to be completed in the third quarter of 2011.
Copano will serve as operator of the 30-inch pipeline and serves as a managing member of the JV.
