TEPPCO And Enterprise Complete Construction Of Jonah Gas Gathering System Pipeline Expansion

Houston - TEPPCO Partners, L.P. and Enterprise Products Partners L.P., through their Jonah Gas Gathering Company joint venture, have announced that a new pipeline looping project, constructed as part of the Phase V expansion of the Jonah Gas Gathering System, is now in service. One of the nation's largest in terms of natural gas volumes gathered, the Jonah Gas Gathering System is located in southwest Wyoming and serves producers in the prolific Jonah and Pinedale fields. The Phase V expansion project is ultimately expected to increase capacity of the system from 1.5 billion cubic feet per day (Bcf/d) of natural gas to 2.4 Bcf/d and reduce wellhead pressures in order to increase production rates, maximize recovery of reserves and generate incremental gathering fees.

The pipeline looping project is the first segment of the Phase V expansion and includes 75 miles of 36-inch diameter pipe and 12 miles of 24-inch diameter pipe that transport natural gas from the Jonah and Pinedale fields to processing plants and interstate pipelines near Opal, Wyoming. These new pipelines expand the gathering system's current capacity by 250 million cubic feet per day to 1.75 Bcf/d. Increasing the Phase V expansion capacity to 2.4 Bcf/d will require the installation of approximately 157,000 horsepower of compression, which is expected to be completed in phases beginning in April 2007 and concluding by the end of 2007.

"The completion of the pipeline looping project, which represents an important milestone in the Phase V expansion program, is particularly timely because the producers we serve now have additional gathering capacity to accommodate recent record production volumes, as well as expected future growth," said Jerry E. Thompson, president and chief executive officer of TEPPCO's general partner. "We are on track to complete the Phase V project as scheduled and realize the full 2.4 Bcf/d of capacity by the fourth quarter of 2007. With the completion of the pipeline expansion, we have nearly quadrupled capacity on the Jonah Gas Gathering System since TEPPCO purchased it in 2001."

Robert G. Phillips, Enterprise president and chief executive officer said, "This new gathering infrastructure supports increased natural gas production from the Jonah and Pinedale fields and provides additional supplies to Enterprise's Pioneer silica gel natural gas processing plant now in service and our Pioneer cryogenic natural gas processing facility, which is under construction and expected to be completed in the fourth quarter of 2007."

Located in the Greater Green River Basin of southwestern Wyoming, the Jonah Gas Gathering System presently serves over 1,100 wells through almost 700 miles of pipeline and is currently gathering approximately 1.5 Bcf/d of natural gas, which represents more than 85 percent of current production from the Jonah and Pinedale fields. The system, which also features four compressor stations that have a combined current capacity of 93,000 horsepower, provides access to four major interstate pipeline systems, including Northwest, Kern River, Colorado Interstate Gas and Questar.

The Jonah and Pinedale fields are ranked as the sixth and third largest natural gas fields, respectively, in the United States in terms of proved reserves reported to the Energy Information Administration. Annual volume growth in the Jonah and Pinedale fields has averaged more than 30 percent during the past five years and over 40 drilling rigs are currently active in the play.

SOURCE: TEPPCO Partners, L.P.