Company Commits to 10-Year Firm Transportation Agreement
DALLAS--(BUSINESS WIRE)--Nov. 17, 2006--Crosstex Energy, L.P.
(NASDAQ:XTEX), announced today that it has agreed to be a foundation
shipper on Boardwalk Pipeline Partners, LP (NYSE: BWP) new interstate
gas pipeline -- Gulf Crossing Pipeline Company, LLC (Gulf Crossing
Pipeline). Gulf Crossing Pipeline will consist of approximately 355
miles of 42-inch pipeline with a design capacity of approximately 1.65
billion cubic feet (Bcf) per day. The Gulf Crossing Pipeline will
connect with Crosstex's North Texas Pipeline (NTPL) in Lamar County,
Texas. Boardwalk's new pipeline will provide Crosstex's customers
access to premium Midwest and East Coast markets through the
Perryville Hub in Louisiana and through Transcontinental Gas Pipeline
Corporation's Station 85.
Crosstex has committed to contract for 150,000 million British
thermal units (MMBtus) per day of firm transportation capacity on Gulf
Crossing Pipeline for an initial term of 10 years following
commencement of service. Gulf Crossing Pipeline is expected to be in
service in the fourth quarter of 2008.
Crosstex will expand its 24-inch NTPL system in the first quarter
of 2007 to a total capacity of approximately 375,000 MMBtu per day.
The NTPL began to serve customers in April 2006.
"Continued drilling success in the Barnett Shale has created the
need for new pipeline capacity," said Barry E. Davis, Crosstex
President and Chief Executive Officer. "We've been working with
Barnett Shale producers for some time to develop access to the premium
Midwest and East Coast markets. Our agreement with Boardwalk to be a
foundation shipper on its Gulf Crossing Pipeline is the result of
these efforts. Crosstex will continue to focus on expanding its
natural gas processing, treating and gathering services in this
About the Crosstex Energy Companies
Crosstex Energy, L.P., a midstream natural gas company
headquartered in Dallas, operates over 5,000 miles of pipeline, 12
processing plants, four fractionators, and approximately 160 natural
gas amine-treating plants in service and approximately 35 dew point
control plants. Crosstex currently provides services for over 3.0
Bcf/day of natural gas, or approximately 6.0 percent of marketed U.S.
daily production based on August 2006 Department of Energy data.
Crosstex Energy, Inc. (NASDAQ:XTXI) (the Corporation) owns the two
percent general partner interest, a 42 percent limited partner
interest, and the incentive distribution rights of Crosstex Energy,
Additional information about the Crosstex companies can be found
This press release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
All statements other than statements of historical facts included
herein constitute forward-looking statements. Although the companies
believe that the expectations reflected in the forward-looking
statements are reasonable, they can give no assurance that such
expectations will prove to be correct.
CONTACT: Crosstex Energy, L.P.
Crystal C. Bell, 214-721-9407
Investor Relations Specialist
Jill McMillan, 214-721-9271
Public Relations Specialist
SOURCE: Crosstex Energy, L.P.