Pipeline Construction

Production growth in shale plays drove pipeline construction in 2010, especially in the Southeast and Midcontinent. Major pipeline projects, including the Fayetteville Express and the Midcontinent Express expansion, came online, helping to bring this new production to consumers (Table 3).

Table 3. Major Pipeline Projects Were Located in the South

Project	Existing System	Length of Entire System	Capacity of Entire System	Length of Expansion	Capacity of Expansion	Begin	End
ETC Tiger	N/A	175 miles	2.0 Bcf/d	N/A	N/A	Panola County, TX	Richland Parish, LA
Fayetteville Express	N/A	185 miles	2.0 Bcf/d	N/A	N/A	Conway County, AR	Panola County, MS
Haynesville Expansion	Regency Intrastate Gas System	450 miles	2.1 Bcf/d	121 miles	1.1 Bcf/d	Caddo Parish, LA	Franklin Parish, LA
Midcontinent Express Expansion	Midcontinent Express	502 miles	1.8 Bcf/d	0 miles	300 MMcf/d	Bryan County, OK	Choctaw County, AL
Fayetteville Lateral Expansion	Fayetteville Lateral	165 miles	1.5 Bcf/d	100 miles	840 MMcf/d	Conway County, AR	Coahoma County, MS

Overall, pipeline construction activity during 2010 increased slightly, continuing an overall upward trend (Figure 6). At least 55 natural gas pipeline projects (those for which data and records are available with state and federal regulators) were completed in 2010 in the lower-48 States. These 55 projects in 2010 added over 2,142 miles of pipeline and represented investments totaling about $8.1 billion. figure data

The need for increased access to growing natural gas supplies from shale formations continued to drive pipeline construction in 2010. Rapid production-related infrastructure growth occurred in northeastern Texas, as well as Louisiana, Arkansas, and Mississippi. Several projects will increase the flow of natural gas from the Haynesville Shale to regional markets. For example, one major project is ETC Tiger Pipeline, completed by Energy Transfer Partners, LP in December 2010. The new pipeline, which has a design capacity of 2 Bcf per day and is only 175 miles long, picks up supplies in the critical supply regions of the Haynesville Shale, Bossier Sands, and Fort Worth Basin production areas for eventual delivery to end-use markets in the Midwest and Northeast via seven interstate pipelines.

Elsewhere, the Fayetteville Express pipeline, a joint venture between Kinder Morgan Energy Partners, LP and Energy Transfer Partners LP, was completed late in 2010, adding 2.0 Bcf per day of capacity to Fayetteville producers. This pipeline helps move gas produces in the Fayetteville Shale to end-use markets in the Midwest and Northeast via connections with four interstate pipelines.

The new Midcontinent Express Pipeline (MEP), completed in July 2009 and expanded in 2010, has proven to be a major infrastructure project that affects regional flow patterns. The pipeline, also a joint venture between Kinder Morgan Energy Partners, LP and Energy Transfer Partners, LP, interconnects with several major pipeline systems and connects with supply sources such as the Barnett Shale.

Although little pipeline capacity was added in the Northeast during 2010, several major projects are underway to give producers in the Marcellus Shale an outlet for their production. Tennessee Gas Pipeline's 300 Line Project, which opened in November 2011, involves the installation of seven looping segments in Pennsylvania and New Jersey totaling approximately 127 miles of 30-inch pipeline. Upon completion, Tennessee expects that the Line 300 Project will increase natural gas delivery capacity in the region by approximately 0.4 Bcf per day. Texas Eastern Gas Transmission (TETCO) expects to complete portions of its TEAM/TIME III in southern Pennsylvania in 2011, which will add about 0.5 Bcf per day of capacity.

In addition to the new pipeline capacity expected for 2011 in the Northeast, other areas of the country also have pipeline infrastructure projects underway. For example, in the summer of 2011, El Paso Corporation's 660-mile Ruby Pipeline came online. This pipeline begins in Opal, Wyoming, and ends at an interconnection in Malin, Oregon. Infrastructure additions also continue in the Southeast to support growth in production from areas such as the Eagle Ford, Haynesville, and Fayetteville Shales.