Boardwalk, Southcross boost Eagle Ford pipeline systems

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, June 16 -- Boardwalk Pipeline Partners LP and Southcross Energy LLC, with its affiliates, announced June 15 plans to modify existing pipeline systems to transport natural gas from the Eagle Ford shale production area in South Texas.

Boardwalk plans to modify an existing section of its subsidiary Gulf South Pipeline's 30-in. OD pipeline from Refugio, Tex., to Fort Bend County, Tex., to allow condensate-rich Eagle Ford gas to travel through it to four Gulf Coast processing plants served by Southcross, including its Gregory plant near Corpus Christi, Tex. Southcross will connect its existing gathering facilities in South Texas to the newly modified Gulf South pipeline segment.

As more gas is being produced and gas prices remain low, one of the important factors has become a play’s liquids since liquids sell at a premium to gas if they can be separated and marketed. This “liquids boost” has shifted attention to plays with high liquids content such as Eagle Ford (Texas) from dry gas plays such as the Fayetteville (OGJ, June 7, 2010, p. 65).

The companies said portions of the modifications could be operational later in 2010 and that they would seek to expand their pipeline capacity in the region.

Contact Christopher E. Smith at chriss@ogjonline.com.

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