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New natural gas pipeline to Mexico expected to be in service by July 2017

Source: Howard Midstream Partners

Howard Midstream Energy Partners (HEP) announced today that it plans to develop the Nueva Era Pipeline, an approximately 200-mile, 30-inch natural gas pipeline connecting its existing Webb County Hub in Webb County, Texas to Escobedo, Nuevo Leon, Mexico, and the Mexican National Pipeline System in Monterrey, according to the company’s press release.

The Nueva Era Pipeline is expected to be in-service in July 2017, the project will be developed with HEP’s Mexican partner, and provide up to 600 MMcf/d of natural gas transportation from South Texas to Escobedo, Nuevo Leon, near Monterrey, connecting producers in South Texas with end-users in Mexico.

“By expanding transportation services off of our Webb Country Hub and developing a new pipeline directly to Monterrey, we can provide northern Mexico’s industrial centers with access to the most competitively-priced gas in the country, while giving South Texas producers access to several new, growing markets,” said Mike Howard, Howard Energy Partners’ chairman and CEO.

HEP expects transportation service rates from the U.S.-Mexico border to Escobedo to be between U.S. $0.13 and U.S. $0.20 per Mcf, subject to the shipper’s required term, level of service, and volume commitment, and pursuant to all Mexican legal requirements.

Connecting the pipeline to the National Pipeline System also gives the company access to the country’s pipeline infrastructure as well, the company told OAG360®. The pipeline “consists of approximately 12,000 km of pipelines and supplies the vast majority of the natural gas consumed within Mexico and could eventually provide gas to Guatemala or liquefied natural gas projects on Mexico’s Pacific coast,” a company representative said when asked about the significance of the connection.

Howard Energy Partners is financially partnered with EnLink Midstream (ticker: ENLK) and Alinda Capital Partners. Howard operates more than 500 miles of pipelines, gathering production from the Eagle Ford, Escondido, Olmos and Pearsall formations, among others in South Texas. The company’s Webb County facility has 200 Mcf/d of cryogenic processing capacity.

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