With binding commercial agreements in hand, Kinder Morgan Inc. (KMI) and Howard Energy Partners (HEP) have begun expanding their Eagle Ford Shale natural gas transportation systems to deliver up to 2 Bcf/d by year’s end to Gulf Coast markets.
Kinder Morgan Tejas Pipeline LLC and HEP’s joint venture Dos Caminos LLC said Wednesday they had enough customer support to begin the expansions. HEP operates Dos Caminos and partners in the project with an affiliate of Eagle Ford Midstream LP (EFM).
KMI’s Tom Dender, president of Natural Gas Midstream, said the Eagle Ford expansion project, which would cost the company around $251 million, “will be a critical supply link for the impending growth being discussed with power generators, industrial customers and LNG exporters along our Texas intrastate pipeline network.”
Tejas, a Texas intrastate line, runs 3,400 miles, primarily along the Gulf Coast, offering firm and interruptible sale, purchase, transportation and storage services.
The Tejas expansion would traverse 67 miles of South Texas through a 42-inch diameter pipeline. The expansion would begin at the existing Kinder Morgan Texas Pipeline compressor station near Freer, which is about 63 miles from the Mexico border. The system would terminate at the Tejas pipeline system near Sinton, which is about 30 miles northeast of Corpus Christi.
A spokesperson for KMI, which moves about 4 Bcf/d of natural gas to the Mexico border, told NGI, "Our shippers will have access to multiple delivery points on our intrastate pipeline system, including delivery points into pipelines that export to Mexico."
Meanwhile, Dos Caminos last year had said an expansion was in the works. The expansion, dubbed Spears, would consist of a 36-inch diameter pipeline, along with compression, treating and dehydration facilities.
HEP CEO Mike Howard would help ramrod the Dos Caminos expansion.
“We have a long history of helping producers in Webb County and surrounding areas find access to premier natural gas markets.” the CEO said. “We believe this expansion, in conjunction with Kinder Morgan’s expansion, will be an important next chapter in that history.”
The 62-mile Dos Caminos pipeline would begin near HEP’s existing midstream pipelines and facilities in Webb County and move gas to the KMTP compressor station in Freer.
HEP also works in Mexico, where executives have said there are huge opportunities.
Together with EFM, whose 158-mile pipeline runs through the Eagle Ford, HEP gathers, treats and transports up to 1 Bcf/d, which is destined for Mexico and to export liquefied natural gas from the Gulf Coast.
In addition, HEP is co-owner, via a 50/50 partnership with Mexico’s Grupo Clisa, of Nueva Era Pipeline LLC, a 190-mile, 30-inch diameter pipeline connecting the Webb County hub with the industrial center of Monterrey, Mexico. Mexican state power utility Comisión Federal de Electricidad (CFE) is the anchor shipper on Nueva Era.
For information on the Tejas expansion, email KMI’s Larry Bell, chief commercial officer for Intrastate Pipelines, or call (713) 369-8776. Information on the Dos Caminos Spears expansion is available via email from HEP’s Tres Peacock, commercial director, or call (210) 298-2222.
