A unit of Dallas-based Heyco Energy Group will to build a $91 million plant east of San Antonio that will produce liquefied natural gas, or LNG, for use by operators in the Eagle Ford Shale oil-and-gas play, officials say.
Heyco Energy’s Heyco LNG subsidiary expects to break ground in May or June on the facility, which will convert natural gas extracted from the shale into LNG that can fuel drilling rigs and hydraulic fracturing equipment used there, company president Chris Coleman says. The site will employ eight to 12 people.
“Producers have figured out that it takes a lot of energy to find and produce energy,” he says. “They’re recognizing that LNG is less expensive than diesel fuel and has lower emissions.”
An increasing number of South Texas oil and gas producers are using cleaner fuels to both to cut costs and reduce their contribution to greenhouse gas creation.
Heyco’s plant will be located on alternate U.S. Highway 77 about an hour and a half east from San Antonio in Lavaca county, near one of the busiest swaths of the Eagle Ford. The company will purchase gas from a nearby Enterprise Products Partners pipeline, Coleman says.