NET MIDSTREAM ANNOUNCES 105-MILE EXPANSION OF ITS EAGLE FORD MIDSTREAM SYSTEM TO THE AGUA DULCE HUB AND FIRM GAS TRANSPORTATION AGREEMENT WITH ANADARKO
Houston, March 23, 2012/ PRNewswire/--NET Midstream ("NET") today announced that Eagle Ford Midstream, LP, (“EFM”),a wholly owned subsidiary of NET, will build a 105-mile, 24”- 30” diameter extension of its existing gas pipeline. The extension will be anchored by a long-term, gas transportation agreement with an affiliate of Anadarko Petroleum Corporation (“Anadarko”).
The extended pipeline will transport residue gas from Western Gas Partners, LP’s Brasada natural gas processing plant in LaSalle County, Texas to interstate and intrastate pipelines at the Agua Dulce Hub in Nueces County, Texas. The first phase of the expansion will be placed into service in December 2012, with completion by April 2013.
“In addition to the recently announced expansions of our liquids-handling capacity, this agreement will secure firm pipeline capacity for our residue gas, which is essential in facilitating the continued rapid production growth Anadarko is achieving in the Eagle Ford Shale,” said Danny Rea, Anadarko’s Vice President of Midstream. “NET Midstream’s existing assets in the region make them an ideal partner for us.”
The Eagle Ford Midstream system currently consists of 55 miles of 16” pipeline anchored by long-term commitments from producers in LaSalle and McMullen Counties and delivers pipeline-quality gas to NET’s LaSalle Pipeline and Transco Pipeline located near Tilden, Texas in McMullen County. NET developed, constructed and operates LaSalle Pipeline, a 53-mile, 16” intrastate natural gas pipeline, completed in 2009. LaSalle Pipeline provides the full gas supply requirements for a 200MW power generation facility located in Pearsall, Texas.
“The second phase of Eagle Ford Midstream provides producers and processors with crucial market liquidity for their plant residue and dry gas production,” said Joe Gutierrez, Co-President of NET. “Upon completion of this project, NET Midstream will have invested approximately $250 Million in over 200 miles of pipeline and facilities in the Eagle Ford Shale. We look forward to incremental growth opportunities for our company as the region continues to develop.” For customer inquiries, contact Mike Freeman at (713) 800-1984 or Dick Kruegerat (713) 800-1940.
About NET Midstream
NET
Midstream is a wholly owned subsidiary of NET Holdings Management, LLC, a privately held natural gas midstream and marketing company. The Company owns six intrastate gas pipelines in Texas and markets natural gas across the United States. The Company is owned 50%
by its Founders and 50% by an affiliate of ArcLight Capital Partners, LLC. More information can be found at the company’s website, www.netmidstream.com.
About Anadarko Petroleum Corporation
Anadar
ko Petroleum Corporation’s mission is
to deliver a competitive and sustainable rate of return to shareholders by exploring for, acquiring and developing oil and natural gas resources vital to the world’s health and welfare. As of year-end 2011, the company had approximately 2.54 billion barrels-equivalent of proved reserves, making it one of the world’s largest independent exploration and production companies. For more information about Anadarko, please visit www.anadar
ko.com.
About ArcLight
A
rcLight is
a leading focused energy investment firm, having invested over $9 billion of capital since its inception over a decade ago. ArcLight has successfully sourced, managed and realized investments through multiple energy industry cycles. The Firm’s investment team has ex
tensive energy expertis
e, i
nvesting experien
ce, indu
stry relationships, and
specialized asset level value creation capabilities. ArcLight is headquartered in Boston, Massachusetts with offices in New York, Barcelona and Luxembourg. More information about ArcLight can be found at www.arclightcapital.com.
This press release includes “forward-looking statements” as defined by the Securities and Exchange Commission. All statements, other than statements of historical fact, included herein that address activities, events, developments or transactions that NET and Anadarko expect, believe or anticipate will or may occur in the future, including anticipated benefits and other aspects of such activities, events, developments or transactions, are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including required approvals by regulatory agencies, the possibility that the anticipated benefits from such activities, events, developments or transactions cannot be fully realized, the possibility that costs or difficulties related thereto will be greater than expected, the impact of competition and other risk factors, including the risk factors discussed in the reports filed with the Securities and Exchange Commission by Anadarko. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. Except as required by law, NET and Anadarko do not intend to update or revise their forward-looking statements, whetheras a result of new information, future events or otherwise.
Contact
NET Midstream
David Marye
Anadarko Petroleum Corporation
John Christiansen
832-636-8736