San Antonio’s Howard Energy Partners plans to build a 200-mile natural gas pipeline connecting producers in the Eagle Ford Shale, in Southern Texas, to customers south of the border in Monterrey, Mexico.
Howard Energy Partners said the “Nueva Era Pipeline” will extend from the company’s hub in rural Webb County to a facility in the Monterrey suburb of Escobedo, Nuevo Leon.
New factories and power plants in Mexico are increasing demand for natural gas south of the border at the same time energy companies are realizing record production in the Eagle Ford Shale region just south of San Antonio.
Howard Energy Partners Chairman and CEO Mike Howard said the pipeline deal is a win-win for the region.
“We can provide northern Mexico’s industrial centers with access to the most competitively priced gas in the country, while giving South Texas producers access to several new, growing markets,” Howard said in a statement.
The 30-inch pipeline will be able to transport up to 600 million cubic feet of natural gas per day and will connect to Mexico’s National Pipeline System in Monterrey. This connection will allow Eagle Ford shale producers to move their product even further south, if needed.
With an expected completion date of July 2017, the San Antonio-based company is currently accepting non-binding indications of interest for use of the pipeline.
Howard Energy Partners expects transportation service rates from the U.S./Mexico border to Escobedo to be between US $0.13 and US $0.20 per thousand cubic feet. Rates are also subject to the shipper’s required term, level of service, and volume commitment, and pursuant to all Mexican legal requirements including a Comisión Reguladora de Energía transportation permit.
The pipeline announcement comes following other cross-border deals for Howard Energy Partners, including another cross-border pipeline in Webb County and a hydrocarbons liquids storage deal at the Port of Brownsville.
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