Meritage Midstream to build rich gas gathering system in Texas
Meritage Midstream Services will build a new rich gas gathering system in Webb County, Texas, including multiple downstream interconnects to allow access to markets such as the Eagle Ford shale.
Escondido Resources II will serve as the system’s anchor tenant and will also have firm capacity on Meritage’s existing Eagle Ford Escondido gathering system to move its Eagle Ford volumes, company officials said.
Escondido Resources will dedicate approximately 33,000 acres to Meritage including deep and shallow rights, in the Eagle Ford, Escondido and Olmos formations.
Known as the Cuervo Creek Pipeline, Meritage’s rich gas gathering system will cover more than 1,300 square miles from Encinal south to Laredo.
The 60-mile system will include multiple downstream interconnects, providing Meritage customers with numerous options for moving rich gas to high value markets out of the region, including the Eagle Ford shale.
The 16-inch Cuervo Creek pipeline will have an initial capacity of 150 MMcf/d and is expected to be in service in the fourth quarter of 2011.
Meritage expects to increase its rich gas gathering capacity in 2012 to accommodate the quickly developing shallow gas play, the company said.
“We are very pleased to be working with Escondido Resources II and our other producers to provide the gathering capacity and optionality they need for their rich gas developed in the Eagle Ford’s rich gas window,” said Meritage CEO Steven B. Huckaby.
”The developing Escondido and Olmos story in northern and central Webb County is a real game changer for the area, and this dedication by Escondido Resources has allowed us to significantly accelerate our rich gas gathering and processing projects for our entire customer base.”
Meritage’s existing lean gas system, the Eagle Ford Escondido gathering system (EEG), serves multiple producers working in dry gas windows with more than 100 miles of high-pressure gathering lines and 145 MMcf/d in treating capacity at the EEG facility near Laredo.
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