Development of unconventional gas continues to drive a significant portion of U.S. pipeline construction, and plans are under way in several areas to boost take-away capacity. As production from the Haynesville, Marcellus and Eagle Ford shale-gas formations ramps up, pipeline companies and midstream operators are either building or planning new transportation systems in the Midcontinent, Southeast, and Northeast regions of the U.S.

Following are some of the more notable shale-gas pipeline projects either under way or on the drawing board.

Haynesville

Kinder Morgan Energy Partners LP, Houston, has agreed to purchase a 50% interest in Petrohawk Energy Corp.’s natural gas gathering and treating business in the Haynesville shale for $875 million in cash. The transaction will create the largest gathering and midstream business in the Haynesville shale of northwest Louisiana.

The assets consist of more than 170 miles of pipeline currently in service, which is expected to increase to about 375 miles of pipeline with projected throughput of more than 800 million cubic feet per day by year-end 2010. Additionally, the system’s amine treating plants have a projected capacity of approximately 2,635 gallons per minute by year-end.

Petrohawk will continue to operate the business during a short transition period, after which a new company, KinderHawk Field Services LLC, owned 50/50 by Petrohawk and Kinder Morgan, will assume operations.

The joint venture has received a life-of-lease dedication to transport and treat all of Petrohawk’s operated Haynesville and Bossier shale production in Louisiana at agreed-upon rates, as well as minimum volume commitments from Petrohawk for the first five years. The new company will also provide firm service to third-party shippers. The venture ultimately is expected to have some 2 billion cubic feet per day of mainline throughput capacity, making it one of the largest gathering and treating systems in the U.S.

Enterprise Products Partners LP and Duncan Energy Partners LP, both of Houston, have announced their jointly owned Acadian Gas LLC subsidiary will extend its Louisiana intrastate gas pipeline system into northwest Louisiana. The project will provide producers in the rapidly expanding Haynesville play with access to markets through connections with Acadian’s existing 1,000-mile pipeline system in South Louisiana and nine major interstate pipelines.

Early plans call for the Haynesville Extension to consist of a 249-mile, 30- and 36-inch pipeline connecting to Acadian’s existing system as well as its affiliated Cypress Gas Pipeline. The companies anticipate completion in September 2011.

In addition, Enbridge Inc., Calgary, plans a new interstate pipeline to transport natural gas—including Haynesville shale production—from Carthage, Texas, to Washington Parish in southeastern Louisiana. The proposed LaCrosse Pipeline, which would run from Enbridge’s Carthage Hub to an interconnection with Sonat Pipeline in Washington Parish, would include approximately 300 miles of 42- and 36-inch pipe. The pipeline would interconnect with at least five to six major interstate pipelines along this route, and could include up to 12 pipeline interconnections, depending on shipper interest.

Enbridge also is exploring whether to extend the pipeline to Florida Gas Transmission’s Station 10 near Wiggins, Mississippi. Completion is expected in late 2011 or early 2012.

Fayetteville

Kinder Morgan Energy Partners and Energy Transfer Partners LP, Houston, continue to advance the $1.25-billion Fayetteville Express Pipeline (FEP) project, and they expect construction to begin in 2010. The joint venture for the project, Fayetteville Express Pipeline LLC, recently reported that the Federal Energy Regulatory Commission has approved its application permitting the construction and operation of the project. The FEP project will involve an approximately 185-mile, 42-inch natural gas pipeline serving the Fayetteville shale producing region in Arkansas. It will originate in Conway County, Arkansas, continue eastward through White County, and terminate at an interconnection with Trunkline Gas Co. in Panola County, Mississippi. Willbros Group Inc., Houston, reports it has been awarded the construction contract for spreads three and four of the project, and its scope of work includes 120 miles of pipe beginning near Bald Knob, Arkansas, and ending at the Trunkline interconnection. This portion of the project was expected to begin construction in April and be completed in October 2010. The overall FEP project is expected to be in service by late 2010 or early 2011.

Eagle Ford

Enterprise Products Partners is building two natural gas pipeline projects in the Eagle Ford shale in LaSalle and Webb counties, Texas. These pipeline projects are the initial expansions of Enterprise’s network of midstream energy assets that span South Texas. One is the White Kitchen Lateral, a new 62-mile, 16-inch natural gas pipeline running through the heart of the developing Eagle Ford play. This system will connect two existing 20-inch pipelines at opposite ends of the development that are part of Enterprise’s South Texas pipeline system. Certain segments of the White Kitchen Lateral are already in service.

An additional segment to further expand the capacity of the White Kitchen Lateral is scheduled for completion in the second quarter of 2010.

Enterprise also reports it will construct a 34-mile, 24-inch pipeline that will be the first segment of a major, east-west Eagle Ford Shale mainline. This segment is designed to connect the partnership’s South Texas pipeline system in southwest LaSalle County to the White Kitchen Lateral, and should be in service in the second quarter of 2010.

Marcellus

National Fuel Gas Supply Corp., based in Williamsville, New York, is gauging market interest in its West-to-East expansion project, designed to offer new gas transportation capacity from Appalachia and central Pennsylvania to key Northeast market interconnects at Leidy. Current plans call for the project to be built in two phases. In Phase I, National proposes to construct pipeline and compression facilities from the area near the intersection of National Lines FM100 and FM120 to Leidy. The facilities may include about 32 miles of 30-inch pipe and a 7,100-horsepower compressor station designed to receive gas directly and/or pump gas from existing lower-pressure pipeline systems into the new high-pressure pipeline.

With sufficient market interest, construction could start in late 2010 or early 2011 to meet a tentative November 2011 completion date. National anticipates providing additional transportation service as early as November 2012 with the construction of Phase II facilities. This could include an additional 50 miles of 30-inch pipe that would run along the existing FM100 corridor back to National’s Line K area, along with a second compressor station with up to 9,000 horsepower.

Elsewhere in the region, Tennessee Gas Pipeline Co., Houston, plans a 300 Line Expansion project to link Marcellus shale and Appalachian natural gas production to Northeast markets. The expansion facilities will consist of some 128 miles of 30-inch pipe loop and approximately 46,000 horsepower of additional compression. The facilities will be constructed in Tennessee’s existing pipeline corridor in Pennsylvania and New Jersey. Construction is subject to approval from FERC and other regulatory agencies. Tennessee plans to execute a phased construction during 2010 and 2011, pending receipt of the necessary regulatory approvals.

In addition, Dominion Transmission Inc., Richmond, Virginia, has requested the FERC pre-filing process for its proposed Appalachian Gateway Project, which is designed to transport natural gas produced in West Virginia and southwest Pennsylvania (including Marcellus shale) to storage fields and pipelines in Pennsylvania. Four new natural gas compressor stations would be constructed and upgrades would be made at two existing compressor stations, adding about 17,000 horsepower of compression to Dominion’s system.

About 110 miles of 20-, 24- and 30-inch pipeline looping would be installed in northern West Virginia and southwest Pennsylvania, terminating at the Oakford station in Delmont, east of Pittsburgh. The approximate cost for facilities in the FERC request is $600 million. Plans are for construction to begin in 2011 and for the line to be in service in 2012.

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