The Federal Energy Regulatory Commission (FERC) gave its approval for the construction of the Fayetteville Express Pipeline to service the Fayetteville Shale area in Arkansas. This will add sorely needed capacity to this fast growing shale play. In 2009, Southwestern Energy (SWN) saw some of its production reduced due to maintenance on a pipeline that is used to transport natural gas.
The project is a 50/50 joint venture between Energy Transfer Partners, L.P. (ETP) and Kinder Morgan Energy Partners, L.P. (KMP). The pipeline will have a 42-inch diameter and will start in Conway County, Arkansas, and will be 185 miles in length, ending in Panola County, Mississippi.
The pipeline will cost $1.25 billion, and have an initial capacity of up to two billion cubic feet per day of natural gas. Construction will begin in early 2010, and be completed by late 2010 or early 2011.