Eagle Ford Gas Headed to Mexico

Texas Resources Important to Mexico's Energy Reforms
Eagle Ford Pipeline to Mexico

Executives from Pemex, BlackRock and First Reserve sign a trans-border pipeline deal.

Petróleos Mexicanos announced Friday that is has acquired the funding to complete the construction of the pipeline Los Ramones II for an estimated $900 million.

The deal was a collaboration between Blackrock and First Reserve will be one of the first projects for Mexico’s historic energy reform that will enable a low-cost energy supply and create jobs. The first part of this project, the Ramones I, ranges from Eagle Ford in Texas to Los Ramones, Nuevo León and phase II will reach Guanajuato to supply the central and western parts of the country.

Related: Eagle Ford Natural Gas is Headed for Mexico

Jim Barry, CEO of the Infrastructure Investment Group of BlackRock commented that “Participation of the private sector in infrastructure will be very important in Mexico, and around the world. Given the recent reforms, growth in Mexico and economic stability, investment opportunities in Mexican infrastructure have definitely drawn our attention and we hope to explore other opportunities in the near future.”

The terms of the deal commit BlackRock to $4.6 billion and First Reserve to $30 million over 25 years and gives them a combined 45 percent control of the project.

Related: Eagle Ford Shale in Mexico Needs Private Investment

Mexico’s rising demand for natural gas has created a lucrative export industry for Eagle Ford producers in recent years. The country hopes to lessen its dependence on other sources by tapping into its own shale oil and natural gas within the next five to 10 years.

Read more at pemex.com

Net Midstream Plans Eagle Ford Pipeline To Mexico from Nueces County

PEMEX Subsidiary Backs Pipeline With Contract For 2.1 Bcfd
Net Mexico Pipeline Map

Net Mexico Pipeline Rough Outline | Click to Enlarge

Net Midstream announced plans for a 42-inch, 124 mile pipeline from Nueces County to Starr County in South Texas. The pipeline is backed by a 2.1 Bcfd transportation contract with MGI Supply ltd (PEMEX Subsidiary). If the pipeline runs at capacity, it will more than double current exports to Mexico. [Read more…]

The Oil Boom Stops at the Mexico Border

The formation extends into Mexico, but almost no development has taken place

Jose Alcala is intrigued by what could be just across the border in Mexico, where friends and relatives live and too often struggle finding jobs.

“You know, the oil doesn’t stop at the border,” he said. “It just goes on and on into Mexico.”

But the boom in oil and gas development does stop at the border, for the most part, a victim of the insecurity generated by warring drug cartels and by a Mexican energy sector that has been stunted by bureaucracy and lack of innovation, observers say.

Read the rest of the story at DallasNews.com

PEMEX Shale Play Spending to Grow to $200 Million

Mexico's shale plans can be paced due to cheap supplies in the U.S.
Mexico Eagle Ford Shale Map

EIA Mexico Eagle Ford Shale Map | Click to Enlarge

PEMEX is preparing to spend $200 million researching and testing shale plays in Mexico. The national oil company plans to test two shale plays, with a focus in the Eagle Ford and one other play.

Commissioner Guillermo Dominguez said seismic studies to be carried out are designed to determine whether the rich petroleum deposits found in shale rock formations in the U.S. extend into Mexico. He said one of the two “large blocks” to be studied is an extension of the Eagle Ford shale rock formation that runs from Texas into Mexico. The other site is just down the Gulf of Mexico near Tampico. [Read more…]