NAmerico is developing the pipeline system in partnership with Cresta Energy Fund I LP (“Cresta Energy”), a newly formed investment fund focused on energy infrastructure. The system will be an efficient link connecting phenomenal growth in the Permian with equally impressive market growth in the Texas Gulf Coast.
Based on current activity levels, NAmerico anticipates Permian production could more than quadruple by the middle of the next decade, with associated gas production reaching as much as 20 billion cubic feet per day, far surpassing the region’s available takeaway options. Recognizing strong and growing demand from both producers and end consumers, NAmerico believes Pecos Trail Pipeline represents the most timely and cost efficient solution in the marketplace today. With an experienced and focused execution team offering a commercially independent connection to multiple downstream markets, a highly competitive pricing structure, and an anticipated first-to-market advantage due to the significant FEED work completed to date, the Pecos Trail Pipeline will be the premiere expansion takeaway solution for Permian natural gas.
“We have been actively engaged in discussions with prospective shippers and stakeholders for several months to identify and design an ideal system to meet the timing and service specifics needed to allow Permian production activity to continue its impressive growth” stated Jeff Welch, Managing Partner of NAmerico Energy Holdings LLC. “The Pecos Trail Pipeline will provide a direct link between two equally important growth stories in the Permian supply region and Gulf Coast demand centers. We believe NAmerico’s option provides a timely solution to the market’s needs” stated Chris Rozzell, Managing Partner of Cresta Energy.
The Pecos Trail Pipeline is slated to be operational in 2019, with anticipated deliveries into numerous intrastate pipelines in Texas, in addition to Spectra Energy’s Valley Crossing Pipeline, The NET Mexico Header, and the Cheniere Energy Corpus Christi LNG Header system, subject to shipper commitments.