Question-and-Answer Session
Operator
(Operator Instruction) Your first question comes from Michael Blum - Wachovia.
Michael Blum - Wachovia Securities
A couple of questions; one, are you still expecting the project, the Haynesville Project to generate roughly $100 million of EBITDA and is that based on what you have contracted today or is that based on the 100% committed capacity?
Byron Kelley
Mike, our numbers is that 100, a little bit higher, and that’s based on the expectations that we will contract, the full amount under the contract on a 100% basis. But, it does not necessarily assume that you’re flowing a 100% of those volumes on day one, but we are assuming the demand charge will be received from day one.
Michael Blum - Wachovia Securities
Okay and then you mentioned that you could upsize the capacity on the pipe to 1.4 to 1.7 Bcf; what would the cost be roughly to do that, and is that just compression?
Stephen Arata
Most of that is compression, there are several projects that we are looking at and if we would just wanted to move more gas to the existing delivery points, it would basically be compression. We are also looking at another project that has a small extension of 10 or 11 miles on the 36 inch that would allow access to some additional gas and then we are looking at little bit longer, a term of project that might move to some additional delivery points that would include significant, not a significant, but a fair amount of pipe. That project you could be looking up something in $200 million plus range and so if you wanted to move up say 1.7 billion cubic feet a day, we would probably looking all in between compression and pipe, somewhere in the $250 or $260 million range.
Michael Blum - Wachovia Securities
Okay, great. Just two other quick ones; one, can you just talk about plans to may be some sort of some sort of debt financing after JV and what their margin looks like, right now?
Byron Kelley
Michael, I’ll address this, it’s a good question. We’ve agreed with our partners not to rise debt at the JV level until the expansion project is complete, which we anticipate near the end of the year and we likely would raise money primarily to expand the system in 2010 and beyond. We haven’t actually gotten any indications of what data that level would look like, but I can say that with the business producing around $150 million of EBITDA, nearly all of which will be from fee based long term contracts, I think it probably will have the fairly good credit profile.
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