Regency Energy announces Haynesville expansion project

Regency Energy Partners LP, Alinda Capital Partners LLC and GE Energy Financial Services have announced plans to construct a $47-million pipeline extension of the Haynesville Expansion Project in North Louisiana to increase capacity on the Regency Intrastate Gas System (RIGS). The extension – called the Red River Lateral – will add approximately 100,000 MMbtud of capacity to the current project, bringing the total project capacity to approximately 1.2 Bcfd.

“The rapid development of the Haynesville Shale has accelerated our growth opportunities around the RIGS system,” said Byron Kelley, chairman, president and chief executive officer of Regency. “The Red River Lateral expands our reach deeper into the sweet spot of the Haynesville Shale and strategically positions the pipeline for further growth to meet rising producer needs. We believe this is the first of several opportunities to extend the Haynesville Expansion Project.”

The Red River Lateral will add approximately 12.5 mi of 36-in. pipe to the Haynesville Expansion Project and will reach further southwest to the west side of the Red River into Red River Parish, Louisiana, an area considered to be one of the richest and most active in the Haynesville Shale.

All of the approximately 100,000 MMbtud of incremental capacity on the Red River Lateral has been contracted and 75,000 MMbtud of additional capacity on the existing Haynesville Expansion Project has been contracted as well. With the exception of a small amount of the capacity currently reserved for operational flexibility, the 1.2 Bcfd of capacity is fully subscribed. The expansions are underwritten by firm transportation agreements with 10-year terms, and approximately 85% of projected revenues will come from reservation fees.

Construction of the Haynesville Expansion Project began May 1, 2009, and is on budget and on schedule to meet the planned in-service date of December 31, 2009. Construction on the 46 mi of 36-in. pipeline is mechanically complete and is now being commissioned, and construction on the 75 mi of 42-in. pipeline began in late June. Construction of the Red River Lateral is expected to begin this month, and is projected to be in service by the end of the year.

Utah rezoning advances Ruby project

El Paso’s proposed Ruby pipeline project has taken a step forward in the wake of the Cache County (Utah) Council’s approved a required rezoning for part of the planned route. The $3-billion project calls for the construction of a 42-in. pipeline that would run 680 miles from Wyoming to Oregon, via Utah and Nevada. Eighteen miles will traverse southern Cache County farmland, with Avon and Paradise being the communities closest. The council voted 6-1 in favor of a utility overlay zone allowing the pipe to run through the primarily agricultural area. According to a report in the Herald Journal (Utah), El Paso has paid property owners for the land the line will cross. Current plans call for a 2010 construction start and an early 2011 completion. 

Williams receives approval for 85 North project

Williams reports that the FERC has approved a proposal to expand its Transco natural gas pipeline by 308,500 dekatherms per day to serve markets in the southeastern United States. New service from the 85 North project will be available in two phases. Phase 1 will increase capacity by 90,000 dekatherms per day by the summer of 2010, while Phase II will increase capacity by 218,500 dekatherms per day by the summer of 2011. The 85 North project will require construction of approximately 22 miles of 42-in. pipeline, in addition to a new 20,500 horsepower compressor facility in Anderson County, S.C., as well as modifications to existing compressor facilities. Williams estimates that the project facilities will cost approximately $248 million. Phase I construction will begin this fall, while Phase II construction is scheduled to get underway next summer.

Acergy wins offshore Angola contract

Acergy has announced the award of the Block 17/18 GEP Phase 2 Project, a contract valued at approximately $110 million from Total E&P Angola and BP Angola (Block 18) B.V. for the installation of over 43 miles of 24-in. pipeline from Block 2, together with the associated jumper, PLET and tie-ins, to the nearshore/onshore pipeline in water depths up to 40 meters. Engineering will commence with immediate effect with offshore installation scheduled to commence in the second quarter of 2010, using Acergy Polaris, Acergy Hawk and Acergy Legend.