Fayetteville Express Pipeline LLC, has started construction on the Fayetteville Express Pipeline, a 50/50 joint venture between Energy Transfer Partners LP, Dallas, (NYSE: ETP) and Kinder Morgan Energy Partners LP, Houston, (NYSE: KMP).
The approximately 185-mile, 42-inch natural gas pipeline will operate in the Fayetteville shale producing region in Arkansas with an initial capacity to transport up to 2 billion cubic feet per day.
The pipeline will originate in Conway County, Arkansas, continue eastward through White County and terminate at an interconnection with Trunkline Gas Co. in Panola County, Mississippi. Contracts have been awarded to Houston-based Willbros Group Inc. (NYSE: WG) and Tulsa-based Sheehan Pipe Line Construction Co. for the construction of the pipeline. Additionally, Houston-based EMS-USA Inc. is constructing the Russell compressor station near Russell, Ark. Energy Transfer Partners is managing the construction of the pipeline and will operate the pipeline. The approximately $1.25-billion pipeline project is expected to be in service by late 2010.
Energy Transfer interstate pipeline vice president Luke Fletcher says, “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.”
Kinder Morgan vice president, business development, Kimberly Watson says, “We are excited construction has kicked off for this much needed pipeline infrastructure for the Fayetteville producers. FEP has limited the construction risks on the project by executing fixed price lump sum construction contracts with the third party contractors. We look forward to providing our customers the opportunity to move their product to desired markets.”
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