Navitas Midstream Partners, LLC is to build new gathering and processing facilities in the Eagle Ford Shale.
The company announced last week that it has entered into a long-term, fee-based agreement with an unnamed independent producer to provide gathering and processing services in the northern Eagle Ford Shale in Brazos and Grimes Counties, Texas.
The planned La Bahia system will consist of a 20-inch gathering line that will deliver gas from Brazos County to a new natural gas processing plant to be built and operated by Navitas in Grimes County. The cryogenic processing plant will have a capacity of approximately 120 million cubic feet per day.
Construction is scheduled for completion in mid-2015.
R. Bruce Northcutt, president and CEO of Navitas, said that the La BahÌa system will be located at the intersection of multiple producing horizons, including the Eagle Ford and Woodbine.
"We believe this transaction supports Navitas' long-term strategy of building an enduring, producer-focused midstream company," Northcutt added.
The boom in production from the Eagle Ford Shale is fueling economic growth in South Texas, according to a local industry group. The South Texas Energy and Economic Roundtable (STEER) claims that oil and gas rigs brought $87 billion to the region in 2013 and that growth is set to continue.
"The million dollar question is always how long is this play going to last? It could last anywhere from 15-20 years, but there are a lot of variables in that, but you're still going to see some growth in this region as a result of the Eagle Ford Shale," Omar Garcia, president of STEER, told KRISTV.com.