COPY-New $1.3B pipeline planned for Fayetteville Shale

Associated Press - October 1, 2008 3:34 PM ET

LITTLE ROCK, Ark. (AP) - Two companies announced today a new $1.3 billion natural gas pipeline that will move gas from the Fayetteville Shale formation in Arkansas to major gas distribution lines.

Fayetteville Express Pipeline LLC is a joint venture between Kinder Morgan Energy Partners and Energy Transfer Partners. The companies say subsidiaries of 2 major drillers - Southwestern Energy Company and Chesapeake Energy Corporation - have agreed to 10-year commitments to use the line to transfer gas the companies have tapped.

The 187-mile pipeline is expected to be in service as soon as late 2010.

The line will run from Conway County, through White County and end in Quitman County, Mississippi, at a major north-south line run by Trunkline Gas Company.

The companies say the pipeline will initially be able to carry 2 billion cubic feet per day. Capacity may be expanded, depending on interest from other companies.

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