Thursday, August 7, 2008

New Louisiana Natural Gas Pipeline to be Built

NEW YORK (Associated Press) - Two companies have agreed to pursue the development of a large pipeline to move natural gas from the Haynesville shale in northwestern Louisiana, considered potentially to be one of the largest domestic gas finds in years.

The pipeline _ to be known as the Haynesville Connector _ would extend about 150 miles from western DeSoto Parish to several major pipelines that cross in the Delhi, La., area.

The deal was announced Tuesday by Denver-based DCP Midstream Partners LP and Houston-based M2 Midstream LLC, both of which are involved in the transportation of petroleum. A price was not disclosed.

If the pipeline is built, completion is expected during the third quarter of 2009. The pipeline will have an estimated 1.5 billion cubic feet per day of capacity, the companies said.

"Producers in the Haynesville-Lower Bossier shale in East Texas and North Louisiana are enthusiastic about results from initial wells which are meeting or exceeding their expectations, and these results are bolstering forecasts for natural gas production in the area," said Mark Borer, chief executive officer of DCP.

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