A Natural Gas Pipeline is to Transport Texas Shale Gas to Mexico
From Energy Global.com
A proposed pipeline project is designed to transport Eagle Ford Shale natural gas into Mexico’s growing energy market.
Houston-based NET Midstream has announced it will construct a 124 mile pipeline to transport natural gas from the Eagle Ford Shale region to the Mexican border.
The deal consists of a long-term agreement to transport 2.1 billion ft3/d of gas with MGI Supply Ltd, a subsidiary of Mexico’s state-owned gas company Petroleos Mexicanos (Pemex).
The 42 in. pipeline will be constructed by NET Midstream’s subsidiary, NET Mexico Pipeline LP from a hub in Agua Dulce in Nueces County to a point near Rio Grande City in Starr County, Texas.
Despite its large reserves, Mexico has not seen quick enough development to meet the country’s consumption, which has been climbing at four times the pace of overall economic growth at times in the past decade.
In August last year, Mexican officials announced that Pemex would use a Cayman Islands subsidiary to help finance a pipeline connecting the Agua Dulce gas hub to Mexico’s pipeline system on the border outside McAllen.
It will feed south Texas gas to the planned Los Ramones pipeline, which will run around 700 miles from the border through Monterrey and on to Aguascalientes state, meeting the demands of Mexico’s rapidly growing automotive industry.
