NET Holdings, Murphy enter Eagle Ford gas transport agreement

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, Nov. 30 -- A unit of NET Holdings Management LLC executed a long-term, fee-based natural gas transportation agreement with Murphy Exploration & Production Co. USA covering a 100,000-acre dedication in the dry gas portion of the Eagle Ford shale.

Eagle Ford Midstream LP, a wholly owned subsidiary of NET, will build a 110-mile gas pipeline initially delivering pipeline-quality gas to Tilden, Tex., in McMullen County, where it will interconnects with NET's LaSalle Pipeline and Transco Pipeline. LaSalle Pipeline is a 53-mile, 16-in. OD intrastate gas pipeline extending through McMullen, LaSalle, and Frio counties, providing full gas supply requirements to a 200-Mw power plant. A second phase of the Eagle Ford Midstream pipeline will add deliveries to interstate and intrastate pipelines at the Agua Dulce hub in South Texas.

Eagle Ford Midstream is holding an open season for additional transportation services on its pipeline system. The pipeline's ultimate capacity and delivery points will be determined by customer interest, the company says.

As of May, Murphy Oil Corp. had accumulated more than 200,000 net acres and was running two rigs on the play (OGJ Online, May 3, 2010).

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

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