HOUSTON, April 18, 2011 /PRNewswire/ -- Copano Energy, L.L.C. (NASDAQ: CPNO) announced today plans to expand processing facilities at its Houston Central complex, located in Colorado County, Texas, in response to producer demand in the rapidly developing Eagle Ford Shale play. The expansion project will consist of a new 400,000 Mcf per day cryogenic processing plant and will bring Copano's total processing capacity at its Houston Central complex to 1.1 Bcf per day. Anticipated capital spending for the expansion is estimated to be approximately $145 million, with an expected in-service date in early 2013. Start-up of the new plant is anticipated to coincide with commencement of Copano's firm capacity at Formosa Hydrocarbons Company's Point Comfort petrochemical facility under a previously announced NGL fractionation and sales agreement.
"We are pleased to be moving forward with the next phase in our Eagle Ford Shale development strategy and expect that our existing infrastructure at Houston Central will enable us to expedite bringing this additional capacity to market," said R. Bruce Northcutt, President and Chief Executive Officer of Copano Energy. "The new state-of-the-art cryogenic processing plant will improve efficiencies at Houston Central, allowing us and our producers to benefit from much higher NGL recoveries for many years to come."
Houston-based Copano Energy, L.L.C. (NASDAQ: CPNO) is a midstream natural gas company with operations in Texas, Oklahoma, Wyoming and Louisiana. Its assets include approximately 6,400 miles of active natural gas gathering and transmission pipelines, 260 miles of NGL pipelines and nine natural gas processing plants, with over one Bcf per day of combined processing capacity and 22,000 barrels per day of fractionation capacity. For more information, please visit www.copanoenergy.com.
This press release includes "forward-looking statements," as defined by the Securities and Exchange Commission. Statements that address activities or events that Copano believes will or may occur in the future are forward-looking statements. These statements include, but are not limited to, statements about future producer activity and Copano's total distributable cash flow and distribution coverage. These statements are based on management's experience and perception of historical trends, current conditions, expected future developments and other factors management believes are reasonable. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the following risks and uncertainties, many of which are beyond Copano's control: price volatility and market demand for natural gas and natural gas liquids; Copano's ability to continue to obtain new sources of natural gas supply and retain its key customers; the impact on volumes, and resulting cash flow, of technological, economic and other uncertainties inherent in estimating future production, producers' ability to drill and successfully complete and attach new natural gas supplies, the availability of downstream transportation systems and other facilities for natural gas and NGLs, and higher construction costs or project delays due to inflation, limited availability of required resources or the effects of environmental, legal or other uncertainties; general economic conditions; the effects of government regulations and policies; and other financial, operational and legal risks and uncertainties detailed from time to time in Copano's filings with the Securities and Exchange Commission.
SOURCE Copano Energy, L.L.C.