American Energy and Regency Energy Partners entered into a joint venture to build and operate a $500 million, 52-mile pipeline that will transport gas from the Utica shale to other pipeline systems in Colorado and Texas. The pipeline will have a capacity of 2.1 billion cubic feet per day and will deliver gas to the Rockies Express Pipeline and Texas Eastern Transmission on its southern end. The firms said the pipeline could later be connected to the interstate grid on its northern end, which would increase capacity to 3.5 billion cubic feet per day. American Energy and Regency will also build 25,000 horsepower of compression at the Rockies Express Pipeline interconnect. The project is expected to be complete in the third quarter of 2015.
“We’re excited about the strong growth potential of the Utica Shale, and this project will be a main takeaway option for Utica development, providing interconnectivity with major interstate pipelines in 2015,” said Regency Senior Vice President Art Cantrell.
American Energy, which is owned by former Chesapeake Energy CEO Aubrey McClendon, earlier this week closed on the acquisition of 27,000 acres of leasehold in Monroe County, Ohio.
