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

Penn Virginia Sells Eagle Ford Midstream Assets to ArcLight Capital – $100 Million

119 Miles of Pipelines in Gonzales and Lavaca Counties Included
Penn Virginia Eagle Ford Operations Update - Dec 2013

Penn Virginia Eagle Ford Operations Update – Dec 2013 | Click to Enlarge

Penn Virginia is selling its natural gas midstream assets in the Eagle Ford to an affiliate of ArcLight Capital Partners (American Midstream) for $100 million.

The deal includes gas gathering, a gas lift system, 119 miles of pipelines and associated facilities in Gonzales and Lavaca counties.
[Read more…]

Marathon Increases Its Eagle Ford Resource Estimate to 1 Billion Barrels

Co-development of the Austin Chalk and Eagle Ford Planned
Marathon Eagle Ford and Austin Chalk Development Plan

Marathon Eagle Ford & Austin Chalk Development Plan

Marathon Oil has increased its total resource estimate for the Eagle Ford from 469 million barrels initially to ~1 billion boe today.

The company will run 18 rigs throughout 2014 in the the Eagle Ford.

In addition, Marathon will pursue developing both the Austin Chalk and Eagle Ford in the area. [Read more…]

NET Midstream Gets FERC Approval for NET Mexico Pipeline to Export Eagle Ford Gas

Planning a 48-inch Border Crossing Pipeline Into Mexico
NET Midstream - Mexico Pipeline Map

NET Midstream – Mexico Pipeline Map | Click to Enlarge

NET Midstream has received FERC approval for border crossing facilities that will allow the NET Mexico Pipeline to export Eagle Ford natural gas to Mexico. At capacity, the pipeline could double U.S. natural gas exports to Mexico.

The Net Mexico pipeline is 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). [Read more…]

Energy Transfer Will Convert an Eagle Ford Gas Pipeline to Liquids to Supply Trafigura Terminal in Corpus Christi

Pipeline Will Have Capacity to Move 100,000 b/d of Crude Oil & Condensate
Trafigura Terminals Eagle Ford Port in Corpus Christi

Trafigura Terminals’ Eagle Ford Port in Corpus Christi | Click to Enlarge

Energy Transfer has reached an agreement with Trafigura for liquids capacity that supports the development of a pipeline supplying the Port of Corpus Christi.

Energy Transfer will utilize existing infrastructure to construct an 82-mile, 100,000 b/d pipeline system from McMullen County to the Port of Corpus Christi. [Read more…]

Atlas Pipeline Expects Full Utilization at Eagle Ford Processing Plants

The Silver Oak II Plant Will Come Online in Q1 2014
Atlas Pipeline Partners Eagle Ford System

Atlas Pipeline Partners Eagle Ford System | Click to Enlarge

Atlas Pipeline acquired Teak Midstream earlier in the year and now expects to reach full utilization at its two processing plants (400 mmcfd) by year-end 2014. [Read more…]