CenterPoint Considers New Natural Gas Pipeline in East Arkansas
arkansasbusiness.com
By Mark Hengel
8/12/2009 10:09:02 AM
CenterPoint Energy Inc. of Houston is considering expanding its core pipeline system in eastern Arkansas, the company announced Wednesday in a press release.
CenterPoint Energy Gas Transmission Co., a subsidiary, is accepting non-binding bids for use of a proposed natural gas transmission line in eastern Arkansas. The company is considering a transmission line because of increased natural gas production in the Fayetteville Shale Play, a natural gas reservoir in the north-central portion of the state. Lack of sufficient transmission lines has been cited by natural gas production companies active in the shale as slowing development in the area.
"Gas production from the Fayetteville Shale remains robust, and an additional expansion of CEGT's core pipeline system would provide these incremental supplies access to the interstate pipelines serving the Midwest and Northeast," said Cy Zebot, CEGT's senior vice president and chief commercial officer.
CenterPoint Transmission will determine the final pricing based on "facility costs, the level of firm commitments and the amount of interest indicated in accessing interstate pipelines," according to the release. The company is not committing to building the pipeline.
Southwestern Energy Co. of Houston, the most prolific operator in the Fayetteville Shale through its Seeco subsidiary, stated in its recent second-quarter report that insufficient pipelines has slowed production in the area.
"As a result of recent inspections, repairs and maintenance on the Fayetteville Lateral, we have experienced curtailments that have impacted our ability to transport our production from the Fayetteville Shale," Southwestern said.
Southwestern currently relies on transmission lines built by Texas Gas Transmission LLC, a subsidiary of Boardwalk Pipeline Partners LP. Texas Gas has repeatedly reduced capacity or shut down its pipelines since April for various reasons, including inspections and maintenance, according to Southwestern's report. The reductions and closings are expected to continue, which will result in Southwestern reducing production levels, according to the company. Texas Gas will begin further repairs and maintenance beginning in September. The work will last between one and five months, according to Southwestern's report.
The deadline for companies expressing interest is 4 p.m. Aug. 26. (For a copy of the bidding form, click here.)
CenterPoint has more than 5 million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma and Texas. |
