New pipeline projects in the Eagle Ford shale play are springing up constantly as midstream companies shift into overdrive to meet capacity needs of producers. In fact, Meritage Midstream Services LLC president and chief executive Steven Huckaby recently spoke about the company's Eagle Ford focus at the Eagle Ford: Developing Unconventional Gas Conference in San Antonio in October. Meritage, which was formed in 2009, has both rich-gas and lean-gas systems in Webb County, which is central to the Eagle Ford trend.

The company's Eagle Ford Escondido Gathering System (EEG) contains 100 miles of high-pressure 12- to 16-inch pipeline with a 210 MMcf per day capacity, a centralized treating facility and interconnects to Kinder Morgan. The new expansion of the EEG system, according to Huckaby, includes an additional 15 miles of highpressure line and an additional interconnect to Kinder Morgan.

Moreover, the Cuervo Creek rich-gas system includes 100 miles of 6- to 16-inch highpressure lines, as well as multiple processing options and directional interconnects to Enterprise Products Partners LP, Southcross Energy LLC, Webb Duval Gatherers, Conoco Lobo and DCP Midstream LLC.

"Our number one goal is to provide reliable options so producers can deliver their gas to the highest value markets. The EEG system will do just that, as it has a 210 MMcf per day capacity and the ability to expand that even further with compression."

Huckaby believes that both rich and lean gas formations in the play, including the Escondido, Olmos, Austin Chalk, Eagle Ford and Pearsall reservoirs will yield additional expansion opportunities in the future, as producers continue development.

However, the Eagle Ford shale play is not without its issues, according to TexStar Midstream Services LP chief executive, Phil Mezey. Midstream operators and producers alike face challenges, including capacity constraints that are curtailing production numbers; increasing capex due to escalating costs for right-of-way, wages, pipeline and equipment; and longer lead times for services, equipment and permits.

Despite these mounting challenges, the company is forging ahead and has recently unveiled a new expansion header to the Three Rivers area. The rich-gas header is a 24-inch line that will deliver sweet gas to the Enterprise Products Partners LP rich-gas system.

TexStar is also rolling out a crude oil pipeline project. The project is a result of its partnership agreement with NuStar Energy LP to reserve firm space on NuStar's line. The system will have 100,000 bbl. per day of capacity. The initial phase will deliver crude oil to the Three Rivers area, beginning December 2011, while the second phase will deliver crude oil onto vessels through NuStar's North Beach Terminal beginning in May 2012.

Elsewhere, Velocity Midstream plans to build a 75-mile, 12-inch condensate pipeline to transport up to 100,000 bbl. per day of condensate from the Gardendale Terminal to NuStar's Oakville Terminal, with ultimate delivery planned to the NuStar Corpus Christi, North Beach Terminal for barge access and direct connection to the petrochemical markets.

According to Rick Wilkerson, president and managing partner of Velocity Midstream Partners LLC, "We're moving about 10,000 bbl. per day now through six receipt points in the gathering system. We're in the process of building a third 8-inch line which will give us a total of 15 receipt points. We will be gathering over 30,000 bbl. per day by the end of the year."

The three 8-inch gathering pipes will feed into the recently completed 12-inch pipeline transporting product from Webb and Dimmit counties up to Velocity's Gardendale Terminal in La Salle County. That system will be moving in excess of 150,000 bbl. per day by mid 2015, Wilkerson promised.

The 2015 expansion project, known as the Gardendale Loop Project, would include adding an incremental 40,000 bbl. per day of pipeline capacity. The Gardendale Terminal will also increase to 285,000 bbl. of storage capacity from the current capacity of 185,000 bbl. The Gardendale terminal will have direct connections with the rail system and downstream pipelines under constructed by Plains All American Pipeline LP, Enterprise Products Partners LP and Harvest Pipeline Co.

As wells in the Eagle Ford come into production, midstream operators are rushing to meet increasing capacity demand with these new projects. Despite curtailments due to a lack of infrastructure, and higher than expected capex costs, new midstream infrastructure in the Eagle Ford shale play is on target to be in place by 2013.