© 2014 The Texas Lawbook.
By Natalie Posgate – (August 8) – Dallas-based Regency Energy Partners LP and American Energy – Midstream LLC have entered a joint venture agreement to build a pipeline in the Utica Shale.
American Energy’s affiliate, American Energy – Utica, LLC, has also agreed to a shipping commitment to support the project.
Regency will fund 75 percent of the project, which is estimated to cost $500 million. American Energy will fund the other 25 percent.
Jones Day represents American Energy, with Houston energy partners Jeff Schlegel and Omar Samji leading the deal.
In an email, Samji said the pipeline “will be an important takeaway option for bringing to market natural gas produced from the Utica Shale.”
Dallas partner Van Jolas and Washington, D.C. partner Seth Warner of Locke Lord led the deal for Regency, receiving assistance from Dallas partner Dean Hinderliter and associate David Lange.
In-house counsel for Regency involved in the deal include General Counsel Todd Carpenter and Senior Counsel Brody Stevens.
Carpenter was the associate GC for Energy Transfer Partners before joining Regency in March. He joined ETP in connection with its acquisition of Southern Union Company, where he served as vice president and assistant GC.
Regency will construct and operate the project on behalf of the joint venture. The new JV is an upsize of Regency’s previously announced Utica Ohio River Project.
The upsized project will include construction of a 52-mile, 36-inch gathering trunkline that will be capable of delivering 2.1 Bcf a day to the Rockies Express Pipeline and Texas Eastern Transmission on the southern end of the line. There is also a potential to connect to the interstate grid on the northern end of the trunkline, which would increase the overall system deliverability to 3.5 Bcf a day.
The pipeline, which will transport natural gas, is expected to become operational in the third quarter of 2015.
© 2014 The Texas Lawbook. Content of The Texas Lawbook is controlled and protected by specific licensing agreements with our subscribers and under federal copyright laws. Any distribution of this content without the consent of The Texas Lawbook is prohibited.
If you see any inaccuracy in any article in The Texas Lawbook, please contact us. Our goal is content that is 100% true and accurate. Thank you.