Construction began June 3, 2008, on the new Gulf Crossing interstate pipeline, which will carry 1.7 billion cubic feet per day (Bcf/d) of natural gas from Sherman, Texas, to Perryville, La.

The natural gas, which will originate in the Barnett Shale and Caney/Woodford Shale plays in southeastern Oklahoma, will serve the following end markets: Midwest via the Perryville Hub, which has interconnects to the Columbia Gulf and Texas Gas systems; Northeast via the Transco and Texas Eastern systems; Southeast and Florida via the Transco, Destin, Florida Gas, and Gulfstream systems; and Henry Hub via the Gulf South and Texas Gas systems. Key Gulf Crossing shippers include Crosstex Gulf Coast Marketing, Ltd., Deven Gas Services, LP, and Enterprise Gas Marketing, LP.

Although the 42-inch pipeline will terminate in northeastern Louisiana, the gas may continue to Station 85 of the Transcontinental Pipeline near the Mississippi/Alabama border via Gulf South's East Texas to Mississippi Expansion and Southern Expansion pipelines. The Transcontinental is a key third-party pipeline that serves the Northeast. Gulf Crossing will lease 1.1 Bcf/d of capacity on Gulf South's pipeline system (Southeast Expansion and a portion of the East Texas to Mississippi Expansion). In addition, the company will enter into a capacity lease agreement with the third-party intrastate pipeline Enogex.

According to Gulf Crossing, the pipeline is fully committed at 1.4 Bcf/d with a weighted average contract life of approximately 9.5 years. Gulf Crossing Pipeline began service in 2009.