CenterPoint, Duke units plan Texas-to-Pennsylvania gas pipeline

Washington (Platts)--1Jun2006

CenterPoint Energy Gas Transmission and Duke Energy Gas Transmission
Thursday said they had signed a memorandum of understanding to develop a
1,600-mile natural gas pipeline that would run from west Texas to western
Pennsylvania.
The proposed Mid-Continent Crossing pipeline would stretch from the Waha
market center in west Texas, to Oakford/Delmont, Pennsylvania, and would
provide US Midwest and eastern markets access to natural gas located in the
producing basins of the Mid-Continent, Rockies and West Texas.
CEGT said an initial open season for MCX designed to solicit shipper
interest in a pipeline running from Dumas, Texas to Barton, Alabama, indicated
there may be demand to extend the proposed line to market centers in the
Northeast.
As a result, the scope of CEGT's original pipeline project has changed.
CEGT and DEGT said they will conduct a new 60-day open season to solicit
interest from producers seeking to deliver to markets farther north, as well
as end-use markets looking to diversify their supply portfolios to include a
greater share from western basins.
The approximately 1,600-mile, 42- and 36-inch-diameter pipeline would
have a capacity of between 1.5 and 1.75 Bcf/d, the two said.
The pipeline could be in service as early as the fourth quarter of 2008.
Producing basins that would benefit from this market access include the
Rockies, San Juan, Permian, Delaware, Granite Wash, Raton, Palo Duro,
Anadarko, Arkoma and Fayetteville Shale.
"We are pleased to work with DEGT on another project of this magnitude,"
Byron Kelley, president of CenterPoint Energy's pipeline group, said in a
statement. "Following both companies' existing rights-of-way for the majority
of the route will enable us to build quickly and at a lower cost than other
alternatives. The new pipeline will provide market access for producers and
bring needed supplies to key gas-consuming markets."

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