MB Pipeline Operations:
NAmerico Energy Holdings (NAmerico), through its operating partner Ocelot Energy Management (OEM), is completing a de-integration of the MB pipeline assets from the current operator at the Brownsville terminal complex. The MB pipeline connects the Brownsville terminal to the PMI/PEMEX refined products distribution system in the interior of Mexico. PMI, the owner of the pipeline asset, chose NAmerico to operate this critical link in their refined products system because of the management team’s rich history and experience. This experience includes more than forty years building and operating pipeline assets across the United States and around the globe. OEM is scheduled to take over operations in 4Q2018.
The 445.5 mile natural gas pipeline will have an initial capacity of 2.0 Bcfd. The Pipeline will serve to alleviate gas take-away constraints in the Permian Basin near the Waha Hub and deliver to Gulf Coast pipelines and markets near the Agua Dulce Hub. The engineering design, environmental survey, and final route selection has been completed. The RFP process has also been completed for the major components of the pipeline’s construction, including the initial selection of contractors for construction, land and ROW services, line pipe, mainline valves and compression equipment. LOI’s are being issued to reserve these critical resources and final contracts are being negotiated. The permitting process (USACE, USFWS, SHPO, TCEQ) is underway and no issues are anticipated. Construction will commence upon FID which is expected by the 3rd quarter 2019. In-service target is 2nd quarter 2021.
The 40 mile 30 inch Midland lateral, from Sprayberry, TX to Sheffield, TX, will provide producers in the north Midland Basin an efficient connection to the Pecos Trail Pipeline. Backhaul to Waha or forward haul to Agua Dulce or other Gulf Coast markets is available from the Midland Lateral. The lateral will connect to the Pecos Trail Pipeline at the suction side of the Sheffield Compressor Station. The lateral is designed to minimize the need for additional compression in the field. The engineering and final route selection has been completed and the RFP process is underway to select and reserve the construction contractors.
The 55 mile 30 inch Orla lateral, will provide producers in the Delaware Basin an efficient connection to the Pecos Trail Pipeline at Waha. Starting in the heart of the “Gas Processors Row” near Orla, the lateral will connect to the Pecos Trail Pipeline at the suction side of the Trailhead Compressor Station. The engineering and final route selection has been completed. RFP process is underway to select and reserve the construction contractors.
NAmerico continues discussions with producers, gatherers and processors related to value added services in the upstream/midstream arena. Prime focus will be in the Midland and Delaware basins developing oil and gas gathering, treating and processing assets along with integrated water systems for gathering/transportation, treating, recycling and disposal systems.
NAmerico is advancing its plans to secure water resources and build a high flow/on demand water distribution system to support the water challenged areas of the basin. Current focus area is Lea and Eddy county, NM. Future plans also include produced water gathering/transportation, treating, recycling and disposal as well as oil and gas gathering, treating and processing throughout the Permian basin.