NAmerico Energy Holdings LLC will develop a 468-mile, 42-in pipeline system to move natural gas from the Permian Basin to the Texas Gulf Coast, the company said April 3.
The Pecos Trail Pipeline will boast a capacity of 1.85 billion cubic feet per day (Bcf/d) when it becomes operational in 2019, the company said in a statement. From the Permian, Pecos Trail will deliver to numerous intrastate pipelines in Texas, as well as Spectra Energy’s Valley Crossing Pipeline, the NET Mexico Header and the Cheniere Energy Corpus Christi LNG Header system, subject to shipper commitments.
Partnering with Houston-based NAmerico is Dallas-based Cresta Energy Fund I LP, a fund focused on energy infrastructure.
“The Pecos Trail Pipeline will provide a direct link between two equally important growth stories in the Permian supply region and Gulf Coast demand centers,” said Chris Rozzell, Managing Partner of Cresta Energy. “We believe NAmerico’s option provides a timely solution to the market’s needs.”
NAmerico’s proposed project is based on its conclusions that Permian production could more than quadruple by around 2025, with associated gas production increasing to as much as 20 Bcf/d, which would exceed the region’s current takeaway options. The company hopes to fill that need with a premiere expansion takeaway solution for Permian producers.
Discussions with prospective shippers are at an advanced stage, NAmerico Managing Partner Jeff Welch told Reuters recently.
“We have been actively engaged in discussions with prospective shippers and stakeholders for several months to identify and design an ideal system to meet the timing and service specifics needed to allow Permian production activity to continue its impressive growth” he said.