DOW JONES NEWSWIRES
Energy Transfer Partners LP (ETP) agreed to spend about $450
million to significantly expand a natural gas pipeline project in
south Texas and construct a processing facility to fulfill new
contracts with several producers.
The company, which owns the biggest intrastate pipeline system
in Texas and is one of the largest marketers of propane in the
country, said Friday it had reached long-term agreements with
several producers to provide natural gas-gathering, processing and
liquids services from the Eagle Ford shale in Texas. The companies
include a Rosetta Resources Inc. (ROSE) unit and a unit of Anadarko
Petroleum Co. (APC).
The initial 160-mile pipeline project will be expanded by 70
miles and will "materially increase" the company's "extensive
midstream infrastructure" in the unconventional shale region. The
initial phase is set for completion in the fourth quarter, while
the expansion segment is targeted for early 2013. Completion of the
gas plant also is set for the first quarter of 2013.
Energy Transfer Partners in February reported fourth-quarter
earnings fell 13% on a surprise drop in revenue because of weakness
in its natural gas operations, as the pipeline company's per-unit
profit fell short of expectations.
Shares were up 26 cents at $53.64 in early trading.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com