San Antonio pipeline operator Howard Energy Partners and Florida-based NextEra Energy Partners have announced a joint venture on Wednesday morning with the intention to move more natural gas from the Eagle Ford Shale of South Texas to the Agua Dulce hub in Nueces County, Texas.
New pipeline opportunities in areas of Webb, Duval, Zapata, Dimmit, La Salle, McMullen, Live Oak and Jim Wells counties will be explored by the two companies.
"The synergies between HEP's and NextEra Energy Partners' Eagle Ford assets provide for a compelling footprint, and we are excited about the potential for this joint venture," Howard Energy Partners CEO Mike Howard said in a statement.
A network of gathering pipelines in the natural gas-rich western end of the Eagle Ford Shale is owned by Howard Energy Partners. Eagle Ford Midstream pipeline network, which moves natural gas from the western end of the Eagle Ford to the Agua Dulce natural gas hub is owned by NextEra Energy Partners.
Natural gas reaching the Agua Dulce hub can be shipped on interstate pipelines, to Cheniere Energy's new liquefied natural gas export terminal in Corpus Christi or destination in Mexico.
"While requiring minimal capital investment, this agreement is expected to increase capacity utilization on NEP's EFM system and improve gross margins by giving NEP access to additional producer volumes in an active Eagle Ford region," NextEra Energy Partners President Armando Pimentel said in a statement.