Tuesday, November 30, 2010

NET Holdings, Murphy enter Eagle Ford gas transport agreement

A unit of NET Holdings Management LLC executed a long-term, fee-based natural gas transportation contract with Murphy Exploration & Production Co. USA covering a 100,000-acre dedication in the dry gas portion of the Eagle Ford shale.

Eagle Ford Midstream LP, a wholly owned subsidiary of NET, will build a 110-mile gas pipeline primarily delivering pipeline-quality gas to Tilden, Tex., in McMullen County, where it will interconnects with NET's LaSalle Pipeline and Transco Pipeline. LaSalle Pipeline is a 53-mile, 16-in. OD intrastate gas pipeline extending through McMullen, LaSalle, and Frio counties, providing complete gas supply requirements to a 200-Mw power plant. A second phase of the Eagle Ford Midstream pipeline will include deliveries to interstate and intrastate pipelines at the Agua Dulce hub in South Texas.

Eagle Ford Midstream is holding an open season for additional transportation services on its pipeline method. The pipeline's ultimate capacity and delivery points will be determined by customer interest, the company says.

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