Crosstex building Barnett pipe
Dallas-based mid-stream outfit Crosstex Energy has completed its project feasibility study and entered into definitive agreements to proceed with construction of the North Texas Pipeline project.
The project is aimed at bringing natural gas production out of the Barnett Shale and into markets in the Midwestern and eastern US.
Crosstex will begin the construction of a 122-mile, 24-inch diameter pipeline from a point just north of Fort Worth, Texas to interconnect with Natural Gas Pipeline of America, Houston Pipeline, and Kinder Morgan Texas in Lamar County, Texas.
The pipeline will have initial capacity of 250 million cubic feet of natural gas per day. Crosstex also has commitments from producers to construct an additional 11 miles 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 scheduled for completion by January 2006. Expected first year cash flow to the Partnership from the project is estimated to be $17.4 million.
Crosstex has begun the acquisition of rights-of-way and will initiate actual construction of the pipeline by late summer of this year.