The project, to bring gas out of the Barnett Shale reserves – the largest gasfield in Texas – and into markets in the Midwest and East, was previously announced in December, 2004.
Based on commitments from Chief Oil & Gas and other producers, Crosstex will begin the construction of a 195-km, 24-in diameter, pipeline from just north of Fort Worth to interconnect with Natural Gas Pipeline of America’s, Houston Pipeline Co’s, and Kinder Morgan’s lines in Lamar County, Texas. The pipeline will have an initial capacity of 9 million cum/d of gas.
Crosstex also has commitments from producers to construct an additional 18km of gathering pipeline to interconnect supply from the Tarrant County area into the North Texas pipeline. The construction cost is estimated at $98 million, and is expected to be completed by January, 2006. The company has begun the acquisition of rights-of-way, and will initiate actual construction of the pipeline by late summer of this year.
