Energy Transfer Partners, L.P. has that two major interstate pipeline projects are expected to be in service ahead of schedule and significantly under budget. The 175 mile ETC Tiger Pipeline and the 185 mile Fayetteville Express Pipeline are both anticipated to be in service on 1 December 2010. Combined, the project costs for these two pipelines are expected to total US$ 2.02 billion, US$ 200 million under most recent estimates and US$ 480 million under original estimates.
“The early completion of these large-scale, interstate projects, coupled with the cost savings we were able to achieve, is an incredible accomplishment for our Partnership,” said Lee Hanse, Senior Vice President, Energy Transfer’s Interstate Pipeline Division. “We are very proud to have two projects of this magnitude in service ahead of schedule and well below the original budget - FEP 22% and Tiger 16% - particularly in light of significant cost overruns and delays experienced by other companies in constructing interstate pipelines in recent years.”
The 42 in. Tiger Pipeline, an interstate natural gas pipeline to serve the Haynesville Shale and Bossier Sands producing regions in Louisiana and East Texas, will have an initial capacity of 2.0 billion ft3/d. Through a planned expansion project subject to FERC approval, the ultimate capacity of the pipeline is expected to be 2.4 billion ft3/d, all of which is sold under long-term contracts ranging from 10 to 15 years.
Tiger Pipeline’s expected in-service date of 1 December 2010 is seven months ahead of the original projection of mid-2011. In addition, pre-expansion project costs are expected to be approximately US$ 1.01 billion, down US$ 85 million from the most recent estimate of US$ 1.095 billion and down US$ 190 million from the original projection of US$ 1.2 billion.
The 42 in. Fayetteville Express Pipeline (FEP), a 50/50 joint venture with Kinder Morgan Energy Partners, L.P., will serve the Fayetteville Shale producing region in Arkansas. The pipeline, which will have the capacity to transport up to 2 billion ft3/d of natural gas, currently has approximately 1.85 billion ft3/d of natural gas capacity sold under long-term contracts ranging from 10 to 12 years.
FEP’s original in-service date was as late as the first quarter of 2011. Project costs for FEP are expected to total approximately US$ 1.01 billion, down US$ 115 million from the most recent estimate of US$ 1.125 billion and down $290 million from the original projection of US$ 1.3 billion. As a 50/50 partner in this project, Energy Transfer’s portion of cost savings from the original estimate totals approximately US$ 145 million.
Read the article online at: https://www.worldpipelines.com/business-news/14112010/energy_transfer_announces_the_early_completion_of_two_major_interstate_pipelines/