A natural gas pipeline is to transport Texas shale gas to Mexico
A proposed pipeline project is designed to transport Eagle Ford Shale natural gas into Mexico's growing energy market.
Houston-based NET Midstream has announced it will construct a 124 mile pipeline to transport natural gas from the Eagle Ford Shale region to the Mexican border.
The deal consists of a long-term agreement to transport 2.1 billion ft3/d of gas with MGI Supply Ltd, a subsidiary of Mexico's state-owned gas company Petroleos Mexicanos (Pemex).
The 42 in. pipeline will be constructed by NET Midstream's subsidiary, NET Mexico Pipeline LP from a hub in Agua Dulce in Nueces County to a point near Rio Grande City in Starr County, Texas.
Despite its large reserves, Mexico has not seen quick enough development to meet the country's consumption, which has been climbing at four times the pace of overall economic growth at times in the past decade.
In August last year, Mexican officials announced that Pemex would use a Cayman Islands subsidiary to help finance a pipeline connecting the Agua Dulce gas hub to Mexico's pipeline system on the border outside McAllen.
It will feed south Texas gas to the planned Los Ramones pipeline, which will run around 700 miles from the border through Monterrey and on to Aguascalientes state, meeting the demands of Mexico's rapidly growing automotive industry.
Development of the NET Mexico Pipeline will start this year and continue through 2014, with the pipeline coming online in December 2014.
“NET Mexico Pipeline will be an important source of supply to meet Mexico's growing demand for natural gas,” said Joe Gutierrez, Co-President of NET, in a recent statement. “NET Mexico is a natural next step in our pipeline system, as we connect abundant gas supply from the Eagle Ford Shale to expanding power generation and industrial markets in Mexico.”
In addition to NET Mexico, the company operates three pipeline systems in the Eagle Ford Shale. Eagle Ford Midstream is a 150 mile, predominantly 30 in. intrastate natural gas pipeline that provides gas transmission for the Brasada
Processing Plant in LaSalle County (operated by Western Gas Partners), and transports pipeline-quality gas from producers in the Eagle Ford Shale to the Agua Dulce Hub. LaSalle Pipeline is a 52 mile, 16 in. pipeline which provides the full gas supply requirements for a 200 MW power generation facility located in Pearsall, Texas. South Shore Pipeline is a 30 mile pipeline that serves Corpus Christi under a long-term gas supply and transportation contract.
Edited from various sources by Cecilia Rehn.
Read the article online at: https://www.worldpipelines.com/business-news/25022013/a_natural_gas_pipeline_is_to_transport_texas_shale_gas_to_mexico-126/
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