Dallas-based Southcross Energy has entered into a long-term agreement with Swift Energy Company to provide natural gas gathering, transportation and processing services for production from Swift Energy’s acreage in McMullen County, TX. Southcross will construct a 25-mile, 20-inch natural gas pipeline with related lateral gathering lines and convert an existing dry pipeline system to rich gas service in order to gather the gas for processing.
The McMullen extension will have an initial, expandable capacity of 120 MMcf/d. The system, which is expected to be in service in mid-2011, will originate in McMullen County, TX and extend to Southcross’ CCNG Transmission pipeline for gas delivery to and processing at Southcross’ processing plant near Gregory, TX.
“This pipeline will be an additional extension for Southcross into the Eagle Ford Shale play, an important step in accomplishing our growth strategy,” said David W. Biegler, Southcross chairman and CEO.