The State Line system in DeSoto and Caddo Parishes seems to be the main motivation for the transaction. The pipeline currently is 138 miles with a capacity of 400 MMcf/day and has two treatment facilities. It is undergoing an expansion, due to be completed in a few months, that will expand the pipeline by 50 miles and increase its capacity to 700 MMcf/day. Once Enterprise takes over, however, it will be connected to Enterprise's Haynesville Extension to its Acadian system and its capacity can easily be expanded to 1.2 Bcf/day.
The Fairplay system serves Rusk, Panola, Nacogdoches and Gregg counties. It is 249 miles long and has a capacity of 285 MMcf/day. After Enterprise takes over, it will be connected to Enterprise's Texas system.
The deal seems to make sense for Enterprise. It is probably a "fully priced" deal, but it provides the Haynesville Extension with instant business. Enterprise has been pushing its Acadian Haynesville Extension as a way for Haynesville producers to access the Southeast United States and bypass Perryville, which is a conduit to the Northeast. It might not validate the concept, but it certainly populates the pipeline.
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