Regency Energy Partners LP, Dallas, (Nasdaq: RGNC) says it has negotiated agreements with shippers to expand its pipeline system in North Louisiana to bring an additional 800 million cubic feet of gas per day from the Haynesville shale to market.
Regency, which has approximately $230 million of purchase commitments related to the Haynesville expansion project, says it is also in discussions with shippers who have requested transportation volumes exceeding the remaining capacity.
Regency chairman, president and chief executive officer Byron Kelley says, "The major remaining milestone for the project is to finalize financing agreements. We continue to work with our general partner, GE Energy Financial Services, to secure appropriate funding for the project. Despite challenging market conditions, we have made progress toward securing permanent financing. If financing is obtained, the project is scheduled to be in service by year-end 2009."
The company says its fourth-quarter 2008 distribution will be $0.445 per outstanding common and subordinated unit. Unitholders as of end-of-business Feb. 6 will be paid the distribution on Feb. 17. As a result of the payment, all of Regency's subordinated units will convert to common units.
Regency says if it does not successfully complete financing, it will have to reduce or suspend distributions to unitholders and/or sell assets so it can continue core operations.
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