Howard Midstream Energy Partners LLC, doing business as Howard Energy Partners (HEP),said Aug. 12 that construction on the Nueva Era Pipeline will move forward after a successful open season.
The pipeline is a 50:50 joint venture between HEP and Mexico-based energy and services firm Grupo Clisa. The 200-mile, 30-inch pipeline connects HEP’s Webb County Hub in South Texas directly to Escobedo, Nuevo León, Mexico, and to the Mexican National Pipeline System (Sistema de Transporte Nacional Integrado) in Monterrey, Mexico.
Mexico’s Comisión Federal de Electricidad will be the foundation shipper, transporting 504 million cubic feet per day (Bcf/d) of natural gas under a 25-year term to help fuel combined-cycle power plants in Escobedo, near Monterrey.
A new open season for expansion capacity began Aug. 12 and will end Sept. 15. The Federal Energy Regulatory Commission already gave HEP a presidential permit allowing expansion of Nueva Era to 1.12Bcf/d.
“With this project we commit ourselves to the development of a cleaner and more economical energy source to meet the needs of Mexican consumers,” said Carlos Martínez Longoria, director of strategic planning of Grupo Clisa. “At Grupo Clisa, we look to create strategic partnerships and alliances with important companies such as Howard Midstream Energy Partners that promote cooperation and regional economic competitiveness.”
Construction on Nueva Era is scheduled to begin in early 2016, and the pipeline is scheduled to be in service in June 2017. It is subject to regulatory requirements and finalizing definitive agreements. HEP will manage all project construction and operations upon completion.
Howard Midstream Energy Partners LLC is based in San Antonio.