The $1.1 billion expansion of the Regency Intrastate Gas System will provide 1.45 billion cubic feet per day (bcfd) of new capacity to handle expected increases in production from the region, said Regency Energy.
Regency has obtained letters of intent for long-term transportation agreements from anchor shippers covering approximately 76% of the incremental capacity and is also seeing strong demand for the remaining capacity.
The Haynesville expansion project includes looping the existing pipeline, extending the system and adding new compression. Construction of the project will be divided into two phases. Phase one is expected to be completed during the first half of 2009, adding 300 million cubic feet per day of capacity once fully operational. Phase one will comprise approximately $375 million of the total cost of the project.
Phase two will add an incremental 1.15bcfd and is expected to be online by the end of 2009 and is expected to be fully operational in the first quarter of 2010. Overall, the project will add 204 miles of pipeline, ranging in diameter from 24 to 42 inches, and 49,000 horsepower of compression.
Byron Kelley, chairman, president and CEO of Regency, said: By launching this project to expand our existing midstream infrastructure in the heart of the Haynesville Shale, Regency has a first-mover advantage in meeting existing and future demand.
