ETP to build gas gathering pipeline and processing plant

Energy Transfer partners (ETP) has entered an agreement with ExxonMobil subsidiary XTO Energy to provide natural gas gathering, processing and transportation services from the Woodford and Barnett Shale regions in the US.

Under the terms of the agreement, ETP will build a natural gas gathering pipeline from the Woodford Shale in Oklahoma to its gathering and processing infrastructure in the Barnett Shale.

The 117 mile Red River Gathering Pipeline will have an initial capacity of 450 million cubic feet per day, and can be further expanded to increase to 550 million cubic feet per day.

The work also includes the construction of a new 200 million cubic feet per day cryogenic processing plant at the Godley processing facility in Johnson County, Texas.

Construction of the pipeline and the processing plant is estimated to cost $360m.