Pipelines in Eagle Ford Shale Looking to Grow With Producers
Two pipeline operators announced expanded efforts to transport natural gas and crude oil from the Eagle Ford shale formation in South Texas.
Koch Pipeline Co. said in a statement it’s seeking approval from its parent company, Koch Industries Inc., to add a 16-inch (41-centimeter) pipeline with a capacity of 120,000 barrels of oil per day that would connect Eagle Ford with Corpus Christi, Texas.
The pipeline’s capacity could be increased to 200,000 barrels per day, Koch said.
Eagle Ford Gathering LLC, a joint venture between Kinder Morgan Energy Partners LP and Copano Energy LLC, said in a statement it agreed to provide transportation and processing to Chesapeake Energy Corp., an Eagle Ford producer.
The partnership also plans to increase the capacity of a previously announced 30-inch gas pipeline to 600 billion British thermal units from 375 billion, Bruce Northcutt, chief executive officer for Copano, said today in the statement.
The Eagle Ford Shale, roughly 50 miles (81 kilometers) wide and 400 miles long, has large amounts of oil, according to the website for the Texas Railroad Commission.
“Some infrastructure expansion” will be required at Eagle Ford to get the oil and gas to customers, EOG Resources Inc. said in a slide presentation in August.
“Eagle Ford is going to turn out to be one of the largest discoveries in the United States, including the Gulf of Mexico deepwater, in the last 40 years,” Mark Papa, chief executive officer of EOG, which has about 505,000 net acres there, told analysts at a meeting April 7.
To contact the reporter on this story: David Wethe in Houston at dwethe@bloomberg.net.
To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net.
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