South Texas natural gas transportation opportunities explored

Published on February 15, 2019 by Douglas Clark

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Howard Energy Partners and NextEra Energy Partners have partnered to develop additional natural gas transportation opportunities in the Eagle Ford shale region of South Texas.

“The synergies between HEP’s and NextEra Energy Partners’ Eagle Ford assets provide for a compelling footprint, and we are excited about the potential for this joint venture,” Mike Howard, HEP chairman and CEO, said. “The connection to NextEra Energy Partners’ EFM system provides an efficient option to expand capacity on our EFG system, as well as providing our producers a direct link to Agua Dulce, bringing new supplies to the emerging markets in Mexico and the Texas Gulf Coast.”

HEP’s existing EFG system, which is located in Webb County, consists of approximately 215 miles of lean gas gathering pipeline, with approximately 1 billion cubic feet per day of throughput capacity.

The NextEra Energy Partners’ EFM system is approximately 150-mile, 30-inch and 16-inch lean gas transportation pipeline originating in La Salle County, spanning portions of McMullen, Duval, Jim Wells, and Nueces counties and terminating at the Agua Dulce hub in Nueces County.

“This is another good example of organic growth opportunities for NextEra Energy Partners in our Texas Pipeline portfolio,” Armando Pimentel, NextEra Energy Partners president, said. “While requiring minimal capital investment, this agreement is expected to increase capacity utilization on NEP’s EFM system and improve gross margins by giving NEP access to additional producer volumes in an active Eagle Ford region. Since the joint venture is based on future commitments on NEP’s EFM and HEP’s EFG assets, existing contracts and revenue streams will not be impacted.”