Chesapeake Energy Corporation signs agreement for natural gas transportation on Fayetteville Express Pipeline

Oct 02, 2008 (M2 EQUITYBITES via COMTEX) -- CHK | Quote | Chart | News | PowerRating -- Chesapeake Energy Corporation (NYSE:CHK), a producer of natural gas in the US, reported on 1 October that the company's wholly-owned subsidiary, Chesapeake Energy Marketing Inc, has executed an agreement for firm transportation of 375 million cubic feet (mmcf) per day of natural gas as well as an option to transport an additional 125 mmcf per day on the Fayetteville Express Pipeline, a new 42-inch 187-mile pipeline system, for a duration of 10 years.

The company said the pipeline system will transport natural gas from its rapidly growing Fayetteville Shale play in Arkansas and will include multiple receipt and delivery points. The pipeline will originate in Conway County, Arkansas, continue eastward through White County, Arkansas, and terminate at an interconnect with Trunkline Gas Company in Quitman County, Mississippi .

The pipeline system, which is being constructed by Kinder Morgan Energy Partners LP and Energy Transfer Partners LP, is anticipated to be in service by late 2010 or early 2011, pending necessary regulatory approvals.

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