Quicksilver Gas Services LP, Fort Worth, Texas, (NYSE: KGS) has added $65 million to its 2008 capital budget, bringing the budget to $185 million.  Quicksilver Gas Services chief executive Thomas (Toby) Darden says the increased was needed to expand and upgrade the company's gathering and processing network to continue supporting the Barnett shale.

Darden says budget includes $39 million for the construction of pipelines and gathering systems, approximately $26 million for compression, approximately $80 million associated with the construction of a third natural gas processing plant and approximately $40 million for the purchase of the Lake Arlington dry gathering system from Quicksilver Resources Inc.

“Rapid demand growth for our gathering and processing services has provided incentives to expand and further upgrade our system at a faster rate than previously anticipated,” Darden says. “We are adding compression to our system to decrease line pressures and enable greater throughput to the existing gathering system. We are also fast-tracking start-up of the first phase of our third processing plant to become operational by year end.”

Quicksilver Gas Services is a limited partnership in the business of gathering and processing gas produced from the Barnett shale. JAS