The capacity of the proposed pipeline is expected to be 2 B cf/d and will transport natural gas from the expanding Haynesville shale area to markets in north Louisiana and CenterPoint Energy’s Perryville Hub.
CenterPoint Energy Pipeline Group Senior Vice President and Group President Greg Harper said “Gas production in north Louisiana, including the rapidly developing Haynesville shale, remains robust and we are committed to finding a solution to assist producers with Haynesville shale, remains robust and we are committed to finding a solution to assist producers with Haynesville and north Louisiana acreage to create another pipeline option for their production.”
NextEra US Gas Assets President Larry Wall said “We believe there is a tremendous need to enhance the existing infrastructure in the rapidly expanding Haynesville Shale area.”
The specific facilities required for the expansion will depend on the location and volume commitment of potential shippers and final pricing will be based on these costs, the level of firm commitments and the amount of interest indicated in accessing specific markets.
Article continues below…Assuming adequate expressions of interest and management approval are received from both companies, a joint venture entity will be formed to execute binding precedent agreements and to seek necessary regulatory approvals, placing the pipeline into service as quickly as possible.
Each company would own an equal equity interest in the new pipeline with CenterPoint Energy’s Pipeline Group overseeing construction and design, and ultimately operating the pipeline.
