US-based Copano Energy will spend around $120m on the extension of its wholly-owned 96-mile DK Pipeline in the Eagle Ford shale play.
The midstream natural gas company will add about 65 miles of 24in pipeline southwest into McMullen County, Texas, to access significant new Eagle Ford volumes.
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The extension project is expected to be completed in the first half of 2013 and will follow the same route as the Double Eagle Pipeline.
Double Eagle Pipeline, a joint venture between Copano Energy and Magellan Midstream Partners, was formed to deliver Eagle Ford shale condensate to Corpus Christi, Texas.
A new long-term, fee-based agreement with Petrohawk Energy Corporation, a unit of BHP Billiton, supports the expansion of the DK Pipeline.
Under the deal, Copano Energy will provide Petrohawk with gathering, processing and natural gas liquid (NGL) handling services for a significant commitment of natural gas volumes from leases in McMullen County.
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By GlobalDataCopano Energy president and CEO R. Bruce Northcutt said: "The southwest extension of our DK Pipeline coupled with the Double Eagle condensate pipeline will allow Copano to offer a full slate of gas, NGL and condensate solutions to our customers in the trend."
Copano Energy has operations in the US states of Texas, Oklahoma, Wyoming and Louisiana.
Its assets include about 6,700 miles of natural gas gathering and transmission pipelines, about 370 miles of NGL pipelines and ten natural gas processing facilities.
