Fayetteville JV Gets Green Light

The Fayetteville Express Pipeline LLC – a 50/50 joint venture between Kinder Morgan Energy Partners, L.P. (KMP - Analyst Report) and Energy Transfer Partners, L.P. (ETP - Analyst Report) – said that the Federal Energy Regulatory Commission (FERC) permitted it to build and operate a 185-mile pipeline to carry natural gas from Arkansas to Mississippi.

Known as the Fayetteville Express Pipeline, the 42-inch diameter conduit will have an initial transportation capacity of 2 billion cubic feet per day (Bcf/d). It will originate in Conway County, Arkansas, and run to the Trunkline Gas Company line in Panola County, Mississippi. Pending necessary regulatory approvals, construction on the $1.3 billion Fayetteville Express Pipeline is expected to begin in early 2010 with completion likely by late 2010 or early 2011.   

Once in service, the Fayetteville Express Pipeline will provide shippers in the Fayetteville Shale producing region in Arkansas with much needed takeaway capacity, flexibility and access to markets.

Dallas-based Energy Transfer Partners L.P. is a master limited partnership owning and operating a diversified portfolio of energy assets. The partnership's natural gas operations include miles of natural gas gathering and transportation pipelines, natural gas treating and processing assets located in Texas and Louisiana, and three natural gas storage facilities located in Texas. Energy Transfer Partners is the operator of the Fayetteville Express Pipeline and is responsible for management of the project’s construction. 

Kinder Morgan Energy Partners L.P., based in Houston, is the largest independent owner and operator of petroleum product pipelines in the U.S., transporting nearly 2 million barrels per day of gasoline, jet fuel, diesel fuel, and natural gas liquids. The partnership also has the capacity to transport 7 billion cubic feet/day (Bcf/d) of natural gas. It owns or operates more than 28,000 miles of pipeline and approximately 170 terminals. The terminals store petroleum products and chemicals, besides handling bulk materials such as coal and petroleum coke. The partnership is also the largest carbon dioxide marketer and transporter in the country.

Read the full analyst report on KMP

Read the full analyst report on ETP