Howard Energy moves forward with construction plans for Nueva Era pipeline

A joint venture of Howard Midstream Energy Partners LLC and Mexico-based energy and services firm Grupo Clisa will move forward with construction plans for the Nueva Era pipeline following a successful open season (OGJ Online, June 24, 2015).

The 200-mile, 30-in. pipeline will connect Howard Energy’s existing Webb County hub in South Texas, part of the Eagle Ford shale, directly to Escobedo, Nuevo Leon, Mexico, and to the Mexican National Pipeline System in Monterrey.

Mexico’s Comision Federal de Electricidad (CFE) will be the foundation shipper, with an agreement to transport 504 MMcfd of natural gas for a 25-year term to help fuel combined-cycle power plants in Escobedo, near Monterrey.

Howard Energy says it will conduct a new open season for expansion capacity on Nueva Era to accommodate additional interest received in the initial open season. It will be held from 9 a.m. CDT on Aug. 12, through 5 p.m. CDT on Sept. 15.

The company says it already has received a presidential permit from the Federal Energy Regulatory Commission that allows for the expansion of Nueva Era up to 1.12 bcfd of capacity.

Subject to meeting all regulatory requirements and finalizing definitive agreements, construction on Nueva Era is expected to begin in early 2016, with an in-service date of June 2017. The potential expansion will not affect the project schedule. Howard Energy will manage all project construction and operations upon completion.

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