ETP, Chesapeake to build new pipeline
January 27, 2009
Energy Transfer Partners, a publicly traded partnership that owns and operates energy assets, has signed an agreement with a wholly owned subsidiary of Chesapeake Energy Corp. to build a 178-mile natural gas pipeline near Carthage, Texas, which will extend through the Haynesville Shale, ending up near Delhi, La.
Chesapeake’s subsidiary Chesapeake Energy Marketing Inc. entered the deal with Dallas-based Energy Transfer Partners (NYSE: ETP).
Construction of the pipeline is expected to cost somewhere in the $1 billion to $1.2 billion-range, with service to begin in 2011. The pipeline, which will be called the Tiger Pipeline, will allow the energy company to connect seven interstate pipelines at strategic points within Louisiana, Energy Transfer Partners said in a press statement.