Southcross Energy Expands Natural Gas Processing, Fractionation Complex in South Texas

Projects Increase Company’s Capacity to Serve Eagle Ford Shale Producers

DALLAS--(BUSINESS WIRE)--Southcross Energy today announced that the company has begun construction of a fractionator and natural gas liquids (NGLs) and residue pipeline outlets in South Texas, which will create a sizable natural gas processing and fractionation complex. The development will expand the company’s ability to serve producers operating in the liquids-rich Eagle Ford Shale area where the NGLs infrastructure is constrained. Southcross will have the capability to process 335 million cubic feet of natural gas per day (MMcf/d) and fractionate 16,300 barrels per day (B/D) of NGLs when all facilities are operational in July 2012.

Southcross is installing its Bonnie View Fractionator in Refugio County, 26 miles northeast of Corpus Christi near the company’s previously announced 200 MMcf/d Woodsboro gas processing facility, which is under construction, and its existing 135 MMcf/d Gregory gas processing plant and fractionator. The Bonnie View Fractionator will have an initial capacity of 11,500 B/D of NGLs, which could be expanded to 15,000 B/D.

As Southcross previously announced in 2011, the company enhanced the efficiency and capacity of its Gregory processing plant located 13 miles east of Corpus Christi in San Patricio County to 135 MMcf/d. This resulted in increased plant liquids extraction capacity and full utilization of the plant’s 4,800 B/D fractionator.

Southcross also is constructing pipelines that will interconnect the Woodsboro, Gregory and Bonnie View facilities, as well as NGL and residue gas outlets. When all planned facilities are completed, Southcross will have the ability to coordinate the transportation of natural gas and NGL volumes between the Woodsboro and Gregory plants and market residue gas, NGL products and y-grade NGLs.

“Our new facilities will expand fractionation capacity and related infrastructure at our South Texas processing complex to alleviate a constrained NGL infrastructure environment. We are providing our customers with much-needed solutions, especially producers operating in the Eagle Ford Shale area who face the challenge of processing and fractionating their liquids-rich gas, and then transporting NGL products and residue gas to attractive markets,” said David Biegler, Chairman and Chief Executive Officer.

Southcross’ pipeline connectivity from the Woodsboro and Gregory facilities will allow producers to access several major interstate and intrastate residue gas pipeline outlets, as well as the company’s traditional Corpus Christi ship channel industrial market. The backbone of Southcross’ residue gas header system is the former Tennessee Gas Pipeline Company (TGP) 5A system. Southcross’ 2011 acquisition of this pipeline was previously announced.

Area Map

Click on this link for a map that shows Southcross Energy’s gas processing and fractionation complex in South Texas: http://www.southcrossenergy.com/maps/southcross_stx_plants120207.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 2,600 miles of pipeline and gathering assets, two gas processing plants, one fractionator and four gas treating plants. Visit www.southcrossenergy.com for more information.