Southcross Energy Expands Gas Processing Capability in Eagle Ford Shale Area to 335 Million Cubic Feet Per Day

Company Constructs New Gas Processing Plant, Increases Capacity at Existing Gas Processing Plant in South Texas

DALLAS--(BUSINESS WIRE)--Southcross Energy today announced that the company is expanding its capability to process liquids-rich natural gas production from the Eagle Ford Shale area in South Texas to 335 million cubic feet of gas per day (MMcf/d). Southcross will construct a new natural gas processing plant with a capacity of 200 MMcf/d in Refugio County, which will be the company’s largest processing facility. Southcross also is enhancing efficiency and increasing the capacity of its Gregory processing plant in San Patricio County to 135 MMcf/d.

“The Eagle Ford Shale is the most actively drilled U.S. shale play today, and we are expanding Southcross’ strategically located pipeline and processing assets to participate in this growth”

Construction of the new processing plant, which will include state-of-the-art equipment, should be completed in the second quarter of 2012. The new plant is located about 25 miles northeast of Corpus Christi near Woodsboro. Southcross also will retrofit and make enhancements to its gas processing plant located 13 miles east of Corpus Christi near Gregory to increase capacity and improve liquids extraction efficiency.

Southcross’ strategically located processing plants will provide producers with multiple options for residue gas disposition via various pipeline interconnects and connections to the local industrial market in the Corpus Christi Ship Channel. Multiple options for natural gas liquids disposition at the plants’ tailgates are planned.

“We are pleased to make extensive improvements to our gas processing and liquids-handling capability to serve producers operating in the Eagle Ford Shale area, as well as improve processing services to our existing customers,” said David W. Biegler, Southcross Chairman and Chief Executive Officer. “These processing plant projects mesh well with the major pipeline extension we are constructing into McMullen County.

“The Eagle Ford Shale is the most actively drilled U.S. shale play today, and we are expanding Southcross’ strategically located pipeline and processing assets to participate in this growth,” Biegler added.

Area Map

Click on this link for a map that shows the Woodsboro and Gregory gas processing plant locations: http://www.southcrossenergy.com/maps/southcross_stx_pressmap.pdf.

About Southcross Energy

Southcross Energy is a Dallas-based midstream natural gas company engaged in the purchase and sale, pipeline transportation, gathering and processing of natural gas in South Texas, Mississippi and Alabama. Southcross operates more than 2,100 miles of pipeline and gathering assets, two gas processing plants and four gas treating plants. Visit www.southcrossenergy.com for more information.