JV to Move Natgas from Eagle Ford to Agua Dulce
San Antonio, TX-based Howard Energy Partners and Florida-based NextEra Energy Partners are joining forces to develop more natural gas transportation opportunities in the Eagle Ford.
Both companies announced Wednesday that they had entered into a joint venture in which capacity will be marketed on Next Era Energy Partners’ Eagle Ford Midstream (EFM) system and Howard Energy Partners’ Eagle Ford Gathering system (EFG). The joint venture will also evaluate pipeline opportunities in areas of mutual interest, including the counties of Webb, Duval, Zapata, Dimmit, La Salle, McMullen, Live Oak and Jim Wells.
“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, Howard Energy Partners CEO said in a release. “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.”
Howard Energy Partners’ EFG system holds 215 miles of lean gas gathering pipeline with 1 billion cubic feet per day of throughput capacity. NextEra Energy Partners’ EFM system is a 150-mile, 30-inch and 16-inch lean gas transportation pipeline that originates in La Salle County and ends 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 in a release. “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.”
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