As the oil and gas industry worries about a shortage of pipelines to handle the growing production in the Permian Basin, something we wrote about earlier this week at OK Energy Today, Houston based NAmerico Energy Holdings LLC has announced plans to build a 468 mile intrastate natural gas system in West Texas.
The 42-inch natural gas system would be capable of transporting 1.85 billion cubic feet a day and carry the gas to different points around Corpus Christi, Texas.
NAmerico says it is building the Pecos Trail Pipeline line in partnership with Dallas-based Cresta Energy Fund I LP, a newly formed investment fund focused on energy infrastructure. The companies believe Permian gas production could more than quadruple by the middle of the next decade and associated gas production could reach as much as 20 billion cubic feet a day.
The two call the Pecos Trail Pipeline the “solution for Permian natural gas.” The line is targeted to be operational in 2019.
“We believe NAmerico’s option provides a timely solution to the market’s needs,” said Chris Rozzell, Managing Partner at Cresta Energy.