Eagle Ford pipeline addition gets green light

Harvest Pipeline Co. of Houston has started building a 25-mile extension of its Arrowhead Pipeline to handle rising crude oil production from the Eagle Ford Shale formation in South Texas.

The addition, going in near the town of Cotulla in LaSalle County, will tie into the 140-mile Pearsoll pipeline near Fowlerton and deliver oil to Corpus Christi, the company said.

Eventually, it will be connected with a new main line being built to accommodate increasing oil output from South Texas.

Rich deposits of crude oil and and natural gas liquids in the Eagle Ford continue to attract major global producers at a time when natural gas prices remain weak.

This year, ConocoPhillips, EOG Resources, Petrohawk Energy and others have plans to sharply ramp up drilling activity in the formation, which stretches from the Mexican border below San Antonio to East Texas.

But some producers have expressed concern that construction of new pipelines and other infrastructure will keep pace with escalating production from the region.

Enterprise Products Partners, Kinder Morgan, Koch Industries and other firms have responded by announcing plans to construct new pipelines, gathering and processing plants and related infrastructure.

Steve Jacobs, president of Harvest, said in a statement his company “will continue to aggressively pursue line extensions and expansions to ensure timely market solutions for Eagle Ford producers.”

Photo: A natural gas drilling site in the Eagle Ford Shale is shown on Sept. 30th, 2009. (Jake Lacey/Houston Chronicle file photo)