Another new pipeline might soon connect the Permian Basin to the Port of Corpus Christi. The Pecos Trail Pipeline, which would become operational in 2019, would cover 468 miles and carry natural gas from West Texas to the Coastal Bend, announced NAmerico Energy Holdings on April 3.
“We have been actively engaged in discussions with prospective shippers and stakeholders for several months to identify and design an ideal system to meet the timing and service specifics needed to allow Permian production activity to continue its impressive growth,” said Jeff Welch, manager partner of NAmerico Partners in a news release.
Designed to transport 1.85 billion cubic-feet of natural gas per day, the pipeline system is being developed in partnership with Cresta Energy Fund I LP. Locations for delivery would include Cheniere Energy Corpus Christi, Spectra Energy’s Valley Crossing Pipeline and the NET Mexico Header, all subject to shipper commitments. Discussions with shippers are ongoing, according to Welch.
The Pecos Train Pipeline joins two others planned for completion in the next two to three years. The Eagle Ford, Permian, Ingleside and Corpus pipeline, or EPIC, is expected to move more than 440,000 barrels per day of crude oil and condensate, also from West Texas.
Another pipeline expected to carry 1.7 billion cubic-feet per day of natural gas will follow a similar route as the Pecos Trail line, covering 430 miles. The Gulf Coast Express Pipeline is being built by Kinder Morgan, which is based in Houston.
Industry experts directly link the flurry of pipeline activity to the increased demand for oil and gas products in Mexico and an expected surge in production from the Permian Basin and Eagle Ford Shale oil plays. EPIC, which will cover 730 miles, will travel through Eagle Ford to facilitate transportation of product from there to the Port of Corpus Christi.
“The Pecos Trail Pipeline will provide a direct link between two equally important growth stories in the Permian supply region and Gulf Coast demand centers,” said Chris Rozzell, managing partner of Cresta Energy. “We believe NAmerico’s option provides a timely solution to the market’s needs.”
Permian Basin production is expected to quadruple by 2025, according to projections.