Crosstex Energy, L.P. said Friday that it has agreed to be a foundation shipper on Boardwalk Pipeline Partners, LP new interstate gas pipeline -- Gulf Crossing Pipeline Company, LLC (Gulf Crossing Pipeline).
Gulf Crossing Pipeline will consist of approximately 355 miles of 42-inch pipeline with a design capacity of approximately 1.65 billion cubic feet (Bcf) per day. The Gulf Crossing Pipeline will connect with Crosstex's North Texas Pipeline (NTPL) in Lamar County, Texas. Boardwalk's new pipeline will provide Crosstex's customers access to premium Midwest and East Coast markets through the Perryville Hub in Louisiana and through Transcontinental Gas Pipeline Corporation's Station 85.
Crosstex has committed to contract for 150,000 million British thermal units (MMBtus) per day of firm transportation capacity on Gulf Crossing Pipeline for an initial term of 10 years following commencement of service. Gulf Crossing Pipeline is expected to be in service in the fourth quarter of 2008.
Crosstex will expand its 24-inch NTPL system in the first quarter of 2007 to a total capacity of approximately 375,000 MMBtu per day. The NTPL began to serve customers in April 2006.
"Continued drilling success in the Barnett Shale has created the need for new pipeline capacity," said Barry E. Davis, Crosstex President and Chief Executive Officer. "We've been working with Barnett Shale producers for some time to develop access to the premium Midwest and East Coast markets. Our agreement with Boardwalk to be a foundation shipper on its Gulf Crossing Pipeline is the result of these efforts. Crosstex will continue to focus on expanding its natural gas processing, treating and gathering services in this prolific basin."
Crosstex Energy, L.P., a midstream natural gas company headquartered in Dallas, operates over 5,000 miles of pipeline, 12 processing plants, four fractionators, and approximately 160 natural gas amine-treating plants in service and approximately 35 dew point control plants. Crosstex currently provides services for over 3.0 Bcf/day of natural gas, or approximately 6.0 percent of marketed U.S. daily production based on August 2006 Department of Energy data.
Crosstex Energy, Inc. owns the two percent general partner interest, a 42 percent limited partner interest, and the incentive distribution rights of Crosstex Energy, L.P.