Source: Southcross Energy
Southcross Energy has entered into a long-term agreement with Swift Energy Company (NYSE:SFY) to provide natural gas gathering, transportation and processing services for production from Swift Energy’s Eagle Ford Shale acreage in McMullen County, Texas.
Southcross will construct a 25-mile, 20-inch natural gas pipeline with related lateral gathering lines and convert an existing dry pipeline system to rich gas service in order to gather the Swift Energy gas for processing.
The McMullen extension will have an initial, expandable capacity of 120 million cubic feet of natural gas per day. The system, which is expected to be in service in mid-2011, will originate in McMullen County, Texas and extend to Southcross’ CCNG Transmission pipeline for gas delivery to and processing at Southcross’ processing plant near Gregory, Texas.
“This pipeline will be an additional extension for Southcross into the Eagle Ford Shale play, an important step in accomplishing our growth strategy. We are delighted to establish this relationship with Swift Energy and provide the important services Swift Energy requires in South Texas,” said David W. Biegler, Southcross Chairman and Chief Executive Officer.