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FERC Approves Construction of Fayetteville Express Pipeline

Fayetteville Express Pipeline, L.L.C., today announced the Federal Energy Regulatory Commission (FERC) has approved its NGA Section 7(c) Certificate Application permitting the construction and operation of the Fayetteville Express Pipeline (FEP), a 50/50 joint venture between Energy Transfer Partners, L.P. and Kinder Morgan Energy Partners, L.P.

FERC’s approval and issuance of FEP’s certificate authorizes the construction of the approximately 185-mile natural gas pipeline serving the Fayetteville Shale producing region in Arkansas. Construction is expected to begin in early 2010, pending FERC’s approval of FEP’s implementation plan.

The 42-inch FEP will originate in Conway County, Ark., continue eastward through White County, Ark., and terminate at an interconnection with Trunkline Gas Company in Panola County, Miss. The pipeline will have an initial capacity to transport up to 2 billion cubic feet per day of natural gas. Pending necessary regulatory approvals, the approximately $1.25 billion pipeline project is expected to be in service by late 2010 or early 2011.

“We are excited to continue the forward momentum of this project with FERC’s approval of our certificate application,” said Lee Hanse, Senior Vice President of Energy Transfer Partners, the operating partner of FEP. “We look forward to staying on track with the timely completion of FEP in order to provide our customers in the Fayetteville Shale area the flexibility and unprecedented market access they have come to expect from us.”

“We are delighted to take another significant step on the FEP project and look forward to starting construction in 2010,” said Tom Martin, president of Kinder Morgan’s Natural Gas Pipelines business. “This project will bring significant jobs to the local economy and provide an outlet for new gas supplies to reach consumers.”

Energy Transfer Partners is managing the construction of the FEP project and will operate the pipeline.

Source: http://www.fepipeline.com/

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