NET Midstream ("NET" or the "Company") today announced that its affiliate, NET Mexico Pipeline Partners, LLC. ("NET Mexico"), has completed construction of its 120-mile, 42" and 48" Texas intrastate pipeline ahead of its scheduled in-service date of December 1, 2014. NET Mexico, which achieved mechanical completion in October, has concluded commissioning activities and is now operational and able to deliver natural gas to Mexico.
"We are pleased to be in-service ahead of schedule," said Jerry Dearing, Co-President of NET. "Our team successfully implemented our innovative project design and met every milestone and challenge."
The design capacity of NET Mexico is 2.3 Bcf/d, which can be expanded to 3.0 Bcf/d with additional compression. NET Mexico will initially operate with 50,000 HP of compression, ramping up to 114,000 HP in late 2015. NET Mexico is anchored by a long term firm gas transportation agreement, for up to 2.1 Bcf/d, with MexGas Supply Ltd., a subsidiary of Pemex, the Mexican state-owned gas company.
"MexGas has been an excellent partner throughout this process, and we look forward to continuing our relationship for years to come," continued Joe Gutierrez, Co-President of NET. "NET Mexico is a crucial component of Mexico's amazing energy reform."
NET Mexico's Agua Dulce Hub will include over 4 Bcf/d of receipt capacity from nine gas pipelines and four gas processing plants. The hub includes three large-diameter header lines, as well as bi-directional meters at many points, with 2.6 Bcf/d of capacity, affording shippers maximum supply liquidity and optionality. Additionally, NET is in discussions with several potential shippers to subscribe to a 700,000 MMBtu/d compression expansion of NET Mexico.
NET Mexico will offer intrastate service from Eagle Ford Midstream (also owned by NET), Enterprise Intrastate Pipeline, Enterprise Texas, Houston Pipe Line, Kinder Morgan Tejas, Conoco Lobo and Southcross. Service from Natural Gas Pipeline Company of America and Tennessee Gas Pipeline will be offered under FERC's NGPA Section 311, which will be added in the coming weeks. NET Mexico will also add receipt points from four processing plants in 2015: Exxon's King Ranch plant, DCP's LaGloria and Gulf Plains plants and Enterprise's Delmita plant.
In addition to NET Mexico, the Company operates three pipelines in the Eagle Ford Shale serving producers and power generators. The Company also owns Monument Pipeline, which serves producers and end-users in the Houston area, and South Shore Pipeline, which provides natural gas service to the City of Corpus Christi.