OMAHA, Neb. – Tenaska Capital Management, LLC (TCM) announced today the commencement of construction of TPF II East Texas Gathering, LLC (ETG), a major high capacity natural gas gathering system with multi-market capacity to serve the Haynesville shale formation in East Texas.
TCM, manager of the $2.4 billion TPF II, L.P., a private equity fund, says the 110-mile, 24-inch system will have a design capacity of over 1 billion cubic feet (bcf) per day. The system will initiate gas deliveries by mid-2010.
The system will traverse the Texas portion of the Haynesville Shale gas producing formation in Nacogdoches, San Augustine, Sabine, Shelby and Panola Counties, an area where production requires significant additional pipeline capacity to provide adequate access to markets. ETG will interconnect with multiple pipelines in the region.
“This high capacity gathering pipeline will be a critical element serving shale gas producers in the region and is a reflection of the confidence TCM has placed in the potential for the Haynesville Shale formation,” said TCM CEO and Senior Managing Director Paul Smith.
“Shale gas plays are the focus of intense industry interest today, given the advanced technologies that are allowing production of gas that was previously unobtainable. The Haynesville formation has the capacity to be one of the most productive of the deep shale formations in the U.S.,” he said.
“Our development of ETG has generated significant interest, and we have entered into agreements with multiple producers covering a material portion of the pipeline capacity,” said Smith. “We will be providing gathering services required by our producer customers with excellent flexibility to redeliver gas to key local and interstate markets in East Texas.”
Businesses and customers may direct questions to Mike Latchem at (214) 520-7877, mobile (214) 478-8520, or MLatchem@TENASKA.com.
About Tenaska Capital Management, LLC
Tenaska Capital Management, LLC (TCM), an affiliate of Tenaska, provides management services to TPF II, L.P. TCM is the manager of Tenaska Power Fund, L.P. and TPF II, L.P.
Tenaska is one of the largest independent power producers in the U.S. In 2009, Forbes magazines ranked Tenaska 16th on its list of the largest privately held U.S. companies, based on 2008 revenues. Tenaska has developed approximately 9,000 megawatts of electric generating capacity across the U.S. Tenaska affiliates currently operate, manage and own in partnership with other companies eight power plants in six states totaling approximately 6,700 MW of generating capacity. Tenaska is headquartered in Omaha, Nebraska, with offices in Dallas, Texas; Denver, Colorado; and Calgary, Alberta, Canada. Tenaska affiliates also market natural gas, electric power and biofuels, with Tenaska’s natural gas marketing affiliate ranked as one of the top 10 natural gas marketers in North America. Tenaska affiliates are also involved in private equity fund management, fuel supply, natural gas exploration and production and electric transmission development. For more information about Tenaska, visit the company’s Web site at www.tenaska.com.