September 9, 2009 / 9:30 PM / in 8 years

UPDATE 1-CenterPoint to develop Shell, EnCana Haynesville ops

* Says to increase throughput at facilities to 700 mmcfd

* Says to spend $250 mln-$300 mln * Says to raise capital from share offering

Sept 9 (Reuters) - Domestic energy delivery company CenterPoint Energy Inc (CNP.N) said its natural gas gathering unit has signed an agreement with units of EnCana Corp (ECA.TO) and Royal Dutch Shell Plc (RDSa.L) to provide gathering and treatment services for their operations in Haynesville shale.

The company said CenterPoint Energy Field Services (CEFS) will increase the throughput of the facilities under agreement to 700 million cubic feet per day (mmcfd) from 100 mmcfd currently.

“If EnCana and/or Shell elect, CEFS will expand its facilities in order to gather and treat additional future volumes. In addition, the agreements include volume commitments,” CenterPoint said in a statement.

Cost for the facilities, including the purchase of existing facilities, will be between $300 million and $325 million, CenterPoint said, adding CEFS would invest as much as $250 to $300 million depending on expansion elections by Shell and EnCana.

Separately, the company said it will offer 21 million shares of its common stock, the proceeds of which will be used to repay debt and fund CEFS’ part of the project.

Shares of CenterPoint closed at $12.21 Wednesday on the New York Stock Exchange. They fell almost 3 percent to $11.87 after the bell.

For the alerts, please double click [ID:nWNAB7978] [ID:nWNAB7970] (Reporting by Arup Roychoudhury in Bangalore; Editing by Unnikrishnan Nair) (arup.roychoudhury@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: arup.roychoudhury.reuters.com@reuters.net))

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below