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New Pipeline to Connect Eagle Ford Rich Gas to Processing

Dallas-based Southcross Energy Partners LP has begun construction of a 94-mile, 24-inch diameter pipeline in the rich gas area of the Eagle Ford Shale in South Texas. The Webb Pipeline is expected to have initial uncompressed capacity of 300 MMcf/d.

The project will allow rich gas sourced from Webb County to flow to Southcross' processing and fractionation complex near Corpus Christi (see Shale Daily, June 16, 2011). Southcross also began construction of a five-mile extension of its McMullen Pipeline to connect to the Webb Pipeline.

The Webb Pipeline will extend from Webb County near Encinal to McMullen County near Tilden. At Tilden it will connect to the extension of Southcross' existing McMullen Pipeline.

"We believe this pipeline is a key step in the next stage of Southcross’ growth that we expect will also include additional assets in the Eagle Ford," said Corey Lothamer, vice president of gas marketing and supply for Southcross' general partner. "We believe there are significant opportunities in extending our Eagle Ford rich gas footprint."

Southcross South Texas operations continued to grow during the fourth quarter. Processed gas volumes increased by about 13% over third quarter volumes, and sales volumes of natural gas liquids were about 28% greater, the company said recently (see Shale Daily, Jan. 16).

The Webb Pipeline is expected to be in service in the fourth quarter. The project cost is estimated at $125 million. It is anchored by a commitment of rich gas volumes to the Southcross system. Advanced discussions are under way with other producers for additional rich gas volumes.

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