NET Midstream Announces FERC's Issuance of a Presidential Permit to NET Mexico Pipeline
HOUSTON, Nov. 12, 2013 /PRNewswire/ -- NET Midstream ("NET" or the "Company") today announced that its affiliate, NET Mexico Pipeline Partners, LLC. ("NET Mexico"), was issued a Presidential Permit by the Federal Energy Regulatory Commission. The order, received on November 8, also granted authorization under Section 3 of the Natural Gas Act for certain border crossing facilities at the international boundary between the United States and Mexico.
NET Mexico will build an approximately 124-mile, 42" and 48" diameter natural gas pipeline system to the international boundary, with associated compression. The pipeline will transport gas from nine interconnects at the Agua Dulce Hub in Nueces County, Texas to a point near Rio Grande City, Texas in Starr County and is scheduled to be placed into service in December 2014.
The pipeline is anchored by a long term firm gas transportation agreement, for up to 2.1 Bcf/d, with MGI Supply Ltd., an indirect wholly owned subsidiary of Pemex Gas y Petroquimica Basica ("PEMEX Gas"), the Mexican state-owned gas company.
"We were pleased to receive this timely authorization from FERC last week. Receipt of the Presidential Permit was an important regulatory milestone for NET Mexico," said Joe Gutierrez, Co-President of NET. "Development and financing of the pipeline is on schedule, with mainline construction beginning in the first quarter of 2014, and mechanical completion in October."
In addition to NET Mexico, the Company operates three pipeline systems in the Eagle Ford Shale. Eagle Ford Midstream is a 150-mile, predominantly 30" intrastate natural gas pipeline that provides gas transmission for the Brasada Processing Plant in LaSalle County (operated by Western Gas Partners), and transports pipeline-quality gas from producers in the Eagle Ford Shale to the Agua Dulce Hub. LaSalle Pipeline is a 52-mile, 16" pipeline which provides the full gas supply requirements for a 200 MW power generation facility located in Pearsall, Texas. South Shore Pipeline is a 30-mile pipeline that serves the City of Corpus Christi under a long-term gas supply and transportation contract.
About NET Midstream
NET Midstream is a wholly owned subsidiary of NET Holdings Management, LLC, a privately held natural gas midstream and marketing company. The Company owns six intrastate gas pipelines in Texas and markets natural gas across the United States. The Company is owned 50% by its Founders and 50% by an affiliate of ArcLight Capital Partners, LLC. More information can be found at the company's website, www.netmidstream.com.
SOURCE NET Midstream