Southern Union Company (NYSE: SUG) today announced that its Panhandle Eastern Pipe Line Company subsidiary has signed a straddle agreement with Next Generation Processing, LLC (NGP).
NGP plans to build and operate a natural gas liquids extraction plant near the Panhandle Eastern compressor station in Haven, Kansas. The straddle agreement between the parties would allow NGP to process natural gas delivered through Panhandle Eastern’s Haven compressor station. The straddle agreement also gives Panhandle Eastern the future option to purchase the plant from NGP. The plant, which will be capable of processing up to 1.4 billion cubic feet per day, is expected to be in service by the fourth quarter of 2013.
“Panhandle Eastern believes that this plant will provide attractive processing opportunities for local producers of rich gas in the nearby Granite Wash and Mississippi Lime formations and benefit its current shippers by increasing supply on the Panhandle Eastern Pipe Line system,” said Eric D. Herschmann, vice chairman, president and COO.
About Southern Union CompanySouthern Union Company, headquartered in Houston, is one of the nation’s leading diversified natural gas companies, engaged primarily in the transportation, storage, gathering, processing and distribution of natural gas. The company owns and operates one of the nation’s largest natural gas pipeline systems with more than 20,000 miles of gathering and transportation pipelines and one of North America’s largest liquefied natural gas import terminals, along with serving more than half a million natural gas end-user customers in Missouri and Massachusetts. For further information, visit www.sug.com. Forward-Looking Statements This press release may include certain statements concerning expectations for the future, including statements regarding the proposal described above, that are forward-looking statements as defined by federal law. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond the control of the management team of SUG. An extensive list of factors that can affect future results are discussed in the reports filed with the Securities and Exchange Commission by SUG. SUG undertakes no obligations to update or revise any forward-looking statement to reflect new information or events.