Energy Transfer to Expand Eagle Ford Shale Assets

Energy Transfer Partners (ETP) has entered into long-term, fee-based agreements to provide natural gas gathering, processing and liquids services from the prolific Eagle Ford Shale in South Texas, US.

ETP has signed agreements with producers including Rosetta Resources Operating and SM Energy.

Under the terms of the agreement, ETP will expand the Rich Eagle Ford Mainline (REM) pipeline in South Texas and construct a new processing facility in Jackson County, for a total cost of $450m.

The REM pipeline expansion will include extending the Partnership’s Chisholm pipeline in DeWitt County, by adding 70 miles of a 36in pipe to the initial 160 mile, 30in REM pipeline.

Completion of the initial phase of REM is scheduled for the fourth quarter of 2011 and the REM expansion will be completed by the end of 2013.

The Jackson County gas processing plant, which is scheduled to be complete in the first quarter of 2013, will have about 600MMcf per day of capacity and can be expanded to 800Mmcf per day.