Howard announces natural gas pipeline development plans

Source:Howard Energy Partners

Howard announces natural gas pipeline development plans

Howard Midstream Energy Partners, LLC (HEP) announced today that it plans to develop the Nueva Era Pipeline, an approximately 200-mile, 30-inch natural gas pipeline connecting its existing Webb County Hub in Webb County, Texas to Escobedo, Nuevo León, Mexico, and the Mexican National Pipeline System (Sistema Nacional de Gasoductos) in Monterrey. HEP is accepting non-binding indications of interest for hub and transportation services on the Nueva Era system from today at 9 a.m. CDT to July 17, 2015 at 5 p.m. CDT. A map of the system can be found here.

Expected to be in-service in July 2017, the Nueva Era pipeline, which will be developed in conjunction with HEP’s Mexican partner, will provide seamless transportation service for up to 600 million cubic feet per day of natural gas from South Texas to Escobedo, Nuevo León, near Monterrey. It will connect producers in South Texas directly with end-users in Mexico, creating access to multiple growing markets. The new pipeline is in response to customer demand during HEP’s previously announced period of solicitation of interest for transportation and export of natural gas to Mexico.

“By expanding transportation services off of our Webb County Hub and developing a new pipeline directly to Monterrey, we can provide northern Mexico’s industrial centers with access to the most competitively-priced gas in the country, while giving South Texas producers access to several new, growing markets,” said Mike Howard, Howard Energy Partners’ Chairman and Chief Executive Officer. “This proposed pipeline is a testament to our great partnerships in Mexico and the deep relationships we have developed there. Our philosophy is that what is good for Mexico is good for South Texas.”

HEP expects transportation service rates from the U.S.-Mexico border to Escobedo to be between US $0.13 and US $0.20 per thousand cubic feet, subject to the shipper’s required term, level of service, and volume commitment, and pursuant to all Mexican legal requirements including a Comisión Reguladora de Energía transportation permit.

By the publishing of this notice, neither Howard nor any of its subsidiaries or affiliates will be obligated to enter into any third-party agreements and may terminate or amend this solicitation for any reason, at any time.

Interested shippers are asked to send a written indication of interest with desired volume, term, and start date to Steve Cruse at 17806 IH-10 West, Suite 210, San Antonio, Texas 78257 or scruse@howardep.com.

Upon receipt of a written indication of interest, HEP will provide interested shippers with a Confidentiality Agreement in order to enter commercial discussions.

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