NET Midstream to construct natural gas pipeline system to Mexico

US-based NET Midstream, a wholly-owned subsidiary of NET Holdings Management said that it will construct a 124-mile and 42in diameter Net Mexico natural gas pipeline system on the Texas / Mexico border.

The company has also signed a long term 2.1 billion cubic feet per day transportation agreement with MGI Supply, an indirect wholly-owned subsidiary of Pemex Gas y Petroquimica Basica.

The Net Mexico pipeline will carry gas from the Agua Dulce Hub in Nueces County, Texas, to the Rio Grande City, Texas.

The pipeline will commence service in December 2014.

NET co-president Joe Gutierrez said NET Mexico Pipeline will be a major source of supply to meet Mexico’s growing demand for natural gas.

"We look forward to this exciting new partnership with MGI and PEMEX Gas," Gutierrez added.

"NET Mexico is a natural next step in our pipeline system, as we connect abundant gas supply from the Eagle Ford Shale to expanding power generation and industrial markets in Mexico."

In addition, the company will operate three pipeline systems in the Eagle Ford Shale.

Eagle Ford Midstream will be a 30in, 150-mile intrastate natural gas pipeline, which will provide gas stream to the Brasada processing plant in LaSalle County and carry pipeline-quality gas from producers in the Eagle Ford Shale to the Agua Dulce Hub.

LaSalle Pipeline will be a 16in, 52-mile pipeline, which will provide the gas supply to the 200MW power generation facility, located in Pearsall, Texas.

South Shore Pipeline will be a 30-mile pipeline, which will serve the City of Corpus Christi.

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Image: NET Midstream will construct a natural gas pipeline system to the Texas / Mexico border. Photo: Courtesy of Mick Garratt.