Crosstex Plans $10 Billion Project To Increase Gathering Capacity In Barnett Shale

Crosstex Energy, L.P. and Crosstex Energy, Inc. have entered into a 10-year firm transportation agreement with a major Barnett Shale producer for an additional 50 MMcf/d of natural gas on its North Texas gathering system.

Crosstex is constructing a compressor station on an existing gathering line to accommodate the customer's transportation requirements. The project is scheduled to be completed and operational in the first quarter of 2011. Incremental investment required for the project is estimated to be less than $10 million and the annual cash flow from the agreement is expected to be $8 million.