Oil and Gas Pipelines Cross Texas-Mexico Border

Despite low oil prices, Mexico will move forward on pipeline initiatives that will impact the Eagle Ford in Texas.

Mexico-Eagle-Ford-Shale-MapJumping on the opportunities afforded by the new energy reform measures, the state power company (CFE) has initiated an aggressive construction campaign that includes $3.3 billion to be spent on 12 natural gas and electricity projects.

The state power company (CFE) plans to move forward on a couple of these projects including the $450 million Colombia-Escobedo pipeline. This project, set to begin in June 2017, will include the development and construction of 155 miles of pipe to run from the town of Colombia in the US border to Escobedo in Mexico’s Nuevo León state. The pipeline will have a capacity of 500Mf3/d and will transport natural gas from Webb County, Texas to Nuevo León state where it will be connected to the country’s pipeline network.

Mexico’s rising demand for natural gas has created a lucrative export industry for Eagle Ford producers in recent years. The country hopes to lessen its dependence on other sources by tapping into its own shale oil and natural gas within the next five to 10 years.

Jim Barry, CEO of the Infrastructure Investment Group of BlackRock commented that “Participation of the private sector in infrastructure will be very important in Mexico, and around the world. Given the recent reforms, growth in Mexico and economic stability, investment opportunities in Mexican infrastructure have definitely drawn our attention and we hope to explore other opportunities in the near future.”

The Eagle Ford Shale (EFS) is quite possibly the largest single economic development in the history of the state of Texas and ranks as the largest oil & gas development in the world based on capital invested. Almost $30 billion was spent developing the play in 2013.


The Eagle Ford had more than a $60 billion dollar impact on the local South Texas economy in 2012 and over 116,000 Eagle Ford jobs were supported in the 20 county area impacted by the play. Add the jobs created in surrounding counties and the picture of a modern oil boom begins to take shape.

From record drilling levels to wells producing over 4,000 b/d of oil initially, the play is redefining South Texas as an oil industry hotbed.

Via: eaglefordshale.com/news/more-pipelines-cross-texas-mexico-border

About Michael Stuart

Mike's experience in the technology industry is quite extensive, serving both as a designer of complex enterprise applications and as a corporate executive. In his previous life, Mike was founder and CEO of AssetWorks Inc. the industry leader in facility management solutions. Currently living on the Texas coast helping with digital strategies using Amplified Content Marketing.