FEP will originate in Conway County, Arkansas, continue eastward through White County, Arkansas, and terminate at an interconnection with Trunkline Gas in Panola County, Mississippi.

Contracts have been awarded to Houston-based Willbros Group and Tulsa-based Sheehan Pipe Line Construction Company for the construction of the pipeline. Additionally, Houston-based EMS-USA is constructing the Russell Compressor Station near Russell, Arkansas.

Energy Transfer Partners is managing the construction of FEP and will operate the pipeline. The approximately $1.25bn pipeline project is expected to be in service by late 2010.

Luke Fletcher, vice president of interstate pipeline division at Energy Transfer Partners, said: “The start of construction on FEP marks an exciting milestone for us as this project will ensure that our customers have strategic takeaway capacity out of the Fayetteville Shale.

“Now that construction has begun on the pipeline, we look forward to its timely completion, demonstrating our commitment to providing the necessary infrastructure to efficiently move natural gas from producing areas to those who need it.”