TPA: Pipeline Industry Has Positive Economic Impact on Texas

Pipeline Photo
Pipeline Photo

As development continues to grow in the Eagle Ford Shale and in West Texas' Permian Basin, the need for additional midstream infrastructure has also grown. Not surprisingly, the pipeline industry has benefited in conjunction with the boom, and according to a new study, Texas and its' people have as well.

In a recently released Texas Tech University study, commissioned by the Texas Pipeline Association (TPA), the state's oil and gas pipeline industry purportedly provided $33-billion in overall economic impact, and supported more than 165,000 jobs in 2013. During the same time frame, the study claims industry provided for $18.7-billion in gross state revenue, and injected $1.6-billion in state and local revenue taxes.

Due to a dramatic increase in the state’s oil and gas production, the demand for additional pipelines is expected to continually increase in the coming years. The communities that are home to pipeline projects are perfectly poised to see economic benefit from the industry in terms of more jobs and increased tax revenues.
— TPA President, Thure Cannon.

According to the study's conservative estimates, pipeline operations and construction will contribute $374-billion in total economic output, and sustain 171,000 jobs annually for the next decade. During the same time frame, the study estimates $212-billion in additional gross state product and $19.5-billion in state and local government revenues.

Eagle Ford Midstream Activity

During 2014, several midstream/pipeline projects have been announced for the Eagle Ford. See below for links to recent stories:

Net Midstream 105-mile Expansion to Agua Dulce Planned

Net Midstream's subsidiary, Eagle Ford Midstream, LP, has plans to expand its existing pipeline system by 105-miles from La Salle County to Nueces County. Anadarko is supporting the pipeline through a long-term transportation agreement.  The addition will add 105-miles of 24-30 inch pipe that will transport residue gas from Anadarko's Western Gas (Brasada) processing plant in La Salle County, TX to the Agua Dulce Hub in Nueces County, TX.

The Eagle Ford Midstream system, as of the announcement, consisted of 55 miles of 16-inch pipeline in La Salle and McMullen counties that delivers gas to Net's La Salle Pipeline and the Transco Pipeline near Tilden, TX. Net's La Salle pipeline delivers gas to a power plant in Pearsall, TX and the Transco Pipeline is a major interstate pipeline operated by Williams that delivers gas from South Texas to the Northeast.

Read more about Eagle Ford Midstream at