HOUSTON, Texas - Copano Energy, L.L.C. (NASDAQ: CPNO) announced on April 18 plans to expand processing facilities at its Houston Central complex, located in Colorado County, Texas, in response to producer demand in the rapidly developing Eagle Ford Shale play.
The expansion project will consist of a new 400,000 Mcf per day cryogenic processing plant and will bring Copano's total processing capacity at its Houston Central complex to 1.1 Bcf per day.
Anticipated capital spending for the expansion is estimated to be approximately $145 million, with an expected in-service date in early 2013.
Start-up of the new plant is anticipated to coincide with commencement of Copano's firm capacity at Formosa Hydrocarbons Co.'s Point Comfort petrochemical facility under a previously announced NGL fractionation and sales agreement.
"We are pleased to be moving forward with the next phase in our Eagle Ford Shale development strategy and expect that our existing infrastructure at Houston Central will enable us to expedite bringing this additional capacity to market," said R. Bruce Northcutt, president and CEO of Copano Energy. "The new state-of-the-art cryogenic processing plant will improve efficiencies at Houston Central, allowing us and our producers to benefit from much higher NGL recoveries for many years to come." (Source: PR NewsWire, April 18, 2011)