Kinder Morgan and Copano agree joint venture

Energy provider Kinder Morgan and Copano Energy, a midstream natural gas company, have entered into formal agreements for Eagle Ford Gathering, a 50/50 joint venture to provide gathering, transportation and processing services to natural-gas producers in the Eagle Ford Shale resource play in South Texas. 

The companies announced a letter of intent for the joint venture on 13 November 2009.

Due to the high level of interest expressed by producers, Kinder Morgan and Copano have each increased their committed capacity from 150,000 to 375,000MMBtu a day to Eagle Ford Gathering for transportation on Kinder Morgan’s Laredo-to-Katy pipeline and processing at Copano’s Houston Central processing plant. 

The joint venture expects the first phase of construction to significantly extend beyond the original 22 miles previously announced.