Pecos Trail Pipeline
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Pecos Trail Pipeline is a proposed natural gas pipeline in Texas, USA.[1]
Location
The pipeline will run from Reeves County, Texas, USA to Aqua Dulce, Texas, USA.[1][2]
Project details
- Owner: Pecos Trail Pipeline Co[3]
- Parent company: NAmerico Energy Holdings LLC; Cresta Energy Fund I LP[3]
- Capacity: 1,850 MMcf/d[4]
- Length: 468 mi[4]
- Status: Cancelled[5]
- Start year: 2021[4]
Background
In 2017, NAmerico Partners LP proposed a multi-billion-dollar pipeline to ferry natural gas from fast-growing fields in West Texas to the Gulf Coast, angling to match plans by rivals such as Kinder Morgan Inc. The pipeline, one of at least three being considered to ease a looming gas glut in the Permian producing region, would link to existing lines, including those that export gas to Mexico and to a Cheniere Energy Inc (LNG.A) liquefied natural gas export facility under construction.[6]
The pipeline would be the first major project by NAmerico Partners, founded two years ago in Houston. The company is backed by private equity fund Cresta Energy LP, whose management includes former executives from Regency Energy Partners LP, a large energy infrastructure company that was bought by Energy Transfer Partners (ETP.N) in 2015. NAmerico Managing Partner Jeff Welch told Reuters in an interview that discussions with prospective shippers were at an advanced stage, and the pipeline would begin operations in 2019 if enough of them committed to supplying gas. He declined to identify the shippers but said the company was confident the project would proceed.[6]
NAmerico’s 468-mile (753-km) pipeline, named the Pecos Trail Pipeline, would transport some 1.85 billion cubic feet per day of natural gas to the major Gulf Coast refining and petrochemical hub in Corpus Christi.[6] NAmerico also plans to build two laterals in conjunction with Pecos Trail, the Midland Lateral and Orla Lateral. Engineering and final route selection have been completed for both. Midland will run 40 miles of 30-in. OD pipe from Sprayberry, Tex., to Sheffield, Tex., connecting north Midland basin producers to Pecos Trail.[7]
As of July 2019, engineering design, environmental survey, and final route selection were complete. Letters of intent are being issued to reserve construction materials and services. FERC permitting is underway, and the company expects to make Final Investment Decisions (FID) on the pipeline at the end of 2019, with a target in-service date of second-quarter 2021.[7]
In April 2020, amidst heavy turbulence in global oil and gas markets, the Financial Times reported that NAmerico was putting on hold the proposed Pecos Trail pipeline project. The paper quoted the company's president Jeff Welch saying, "We’re just being responsive to what's going on, recognising that the upstream sector is not going to see the growth that people had expected."[5]
As of October 2022, there was not further evidence for development of the pipeline, and it is considered cancelled as of 2022.
Articles and resources
References
- ↑ 1.0 1.1 Pecos Trail, RBN Energy, accessed October 2018
- ↑ National Energy and Petrochemical Map , FracTracker, February 28, 2020
- ↑ 3.0 3.1 "NAmerico Energy Holdings Announces Formation of Pecos Trail Pipeline Company". Retrieved 2022-10-14.
- ↑ 4.0 4.1 4.2 "Natural Gas Data - U.S. Energy Information Administration (EIA)". www.eia.gov. Retrieved 2022-10-14.
- ↑ 5.0 5.1 Gregory Meyer, Natural gas drillers get share price boost as oil price falls, Financial Times, April 2, 2020
- ↑ 6.0 6.1 6.2 Exclusive: NAmerico unveils natural gas pipeline plan to relieve Permian glut, Reuters, accessed October 2018
- ↑ 7.0 7.1 Christopher E. Smith, Permian pipeline projects race to remove export bottlenecks, Oil and Gas Journal, July 1, 2019
