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

NET Midstream - Mexico Pipeline Map

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 - Net Midstream Plans Eagle Ford Pipeline from Mexico to Nueces County

“We were pleased to receive this timely authorization from FERC last week. Receipt of the Presidential Permit was an important regulatory milestone for NET Mexico.” said Joe Gutierrez, Co-President of NET. “Development and financing of the pipeline is on schedule, with mainline construction beginning in the first quarter of 2014, and mechanical completion in October.”

Much of the pipeline will be 42 inch pipe, but approval has been granted for a 48-inch pipeline into Mexico.

Read the full press release at netmidstream.com

Net Midstream Plans Eagle Ford Pipeline To Mexico from Nueces County

Net Mexico Pipeline Map

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.

The natural gas will be transported from the Agua Dulce hub in Nueces County to a point near Rio Grande City in Starr County.

“If the Net Mexico Pipeline moves 2.1 Bcfd, it will more than double current natural gas exports to Mexico. ”

In the past two years, US natural gas flows into Mexico have increased to approximately 2 Bcf/d. That's up from less than 1 Bcf/d at the beginning of 2010. Demand for natural gas in Mexico is rising as natural gas production is falling. Compare US natural gas prices to LNG prices and you begin to see why Mexico is after US natural gas. It's cheap! An $8 billion pipeline expansion of Mexican infrastructure is already planned. More than $3 billion will be spent expanding pipelines in Northern Mexico where the Net Mexico Pipeline will connect.

“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. “Welook forward to this exciting new partnership with MGI and PEMEX Gas. 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."

Net Midstream already operates a 30-inch, 150 mile pipeline that originates at the Brasada Processing Plant (operated by Western Gas) in La Salle County Texas. That is one Eagle Ford source and I bet we'll see others as gas production grows. Natural gas prices in Mexico are more favorable (higher), so producers will enjoy a transportation route that avoids Henry Hub.

Net Midstream also operates a pipeline that delivers gas to a 200 MW power plant in La Salle County and a 30-mile pipeline that serves the City of Corpus Christi.

Read the full press release here.

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 netmidstream.com