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Enterprise starts new pipeline for Louisiana shale

10.31.2011  | 

Enterprise Products says its $1.5 billion, 270-mile Acadian Haynesville Extension pipeline officially begins commercial service on Tuesday. Featuring interconnects with 12 interstate pipeline systems and the only southerly option that avoids potential bottlenecks at the Perryville hub, the Haynesville Extension offers producers flow assurance and market choice to assist in maximizing the value of their natural gas.

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Enterprise Products says its $1.5 billion, 270-mile Acadian Haynesville Extension pipeline officially begins commercial service on Tuesday.

With the completion of the project, producers in Louisiana’s prolific Haynesville/Bossier Shale play will have access to 1.8 billion cubic feet per day (Bcf/d) of incremental takeaway capacity.

By increasing the system’s currently installed 74,000 horsepower of compression, capacity could be increased to 2.1 Bcf/d, the company said. The project is supported by long-term, firm contracts with shippers totaling 1.6 Bcf/d.

As an extension of the partnership’s legacy Acadian system, the Haynesville project offers producers access to more than 150 end-use customer service locations along the Mississippi River industrial corridor between Baton Rouge and New Orleans, as well as the Henry Hub.

Featuring interconnects with 12 interstate pipeline systems and the only southerly option that avoids potential bottlenecks at the Perryville hub, the Haynesville Extension offers producers flow assurance and market choice to assist in maximizing the value of their natural gas.

“Superb coordination among the various commercial, engineering, operations, legal and administrative teams at Enterprise, along with the ingenuity of our experienced contractors and support from the local communities all played a significant role in the success of this project,” said Michael A. Creel, CEO of Enterprise’s general partner.

“In addition to providing producers with a timely and flexible solution, the Acadian Haynesville Extension has also created benefits for the region, the state and the country by providing jobs, additional tax revenues and more supplies of domestic energy,” Creel added.

Located near half of the approximately 100 drilling rigs currently working in the Haynesville/Bossier Shale region, Enterprise said its Acadian Extension can offer attractive economics for producers, while providing Louisiana’s industrial and utility consumers with access to a reliable source of onshore natural gas supply to supplement offshore volumes, thereby reducing their exposure to storm-related disruptions.

The Haynesville/Bossier Shale encompasses about two million acres, with current production from the approximately 2,300 wells completed to date estimated at more than 7 Bcf/d.

Over 1,000 locations are in various stages of drilling and completion.



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Gustavo Villamarin
11.02.2011

WUP

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