Copano Announces Second 400,000 Mcfpd Expansion

Copano Energy, L.L.C. announced plans to add an additional 400,000 Mcf per day of cryogenic processing capacity at its Houston Central complex, located in Colorado County, Texas, in response to continuing producer demand in the liquids rich Eagle Ford Shale play.

The expansion project will bring Copano's total high-efficiency cryogenic processing capacity at its Houston Central complex to 1.0 Bcf per day. Anticipated capital spending for the expansion and associated facilities is estimated to be approximately $190 million, with an expected in-service date in mid-2014.

Copano also announced execution of a new long-term fee-based gathering and processing agreement with a major Eagle Ford producer, which combined with previously announced producer commitments, will support the expansion. Copano has previously announced plans for an initial 400,000 Mcf per day cryogenic processing expansion at Houston Central, which is expected to be in service in the first quarter of 2013.

"This second cryogenic expansion project reaffirms our commitment to being a leading midstream service provider in the Eagle Ford shale," said R. Bruce Northcutt, President and Chief Executive Officer of Copano Energy. "While we expect to invest capital for this project at a 5-times multiple or better, our producers and customers will also benefit from the expansion through enhanced performance and improved recovery of natural gas liquids."