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Southcross Energy Partners, L.P. Announces Commencement of Construction of New Eagle Ford Pipeline

DALLAS--(BUSINESS WIRE)--Jan. 29, 2014-- Southcross Energy Partners, L.P. (NYSE:SXE) (“Southcross”) today announced that it has commenced construction of a new 24-inch diameter pipeline, approximately 94 miles in length in the rich gas area of the Eagle Ford shale in South Texas. The pipeline, named the Webb Pipeline, is expected to have initial uncompressed capacity of approximately 300 MMcf/d. Southcross has also initiated construction of a 5 mile extension of its McMullen Pipeline to connect to the new pipeline.

The pipeline will extend from Webb County near Encinal, Texas, to McMullen County near Tilden, Texas. At Tilden, the new Webb Pipeline will connect to the extension of Southcross’ existing McMullen Pipeline. This new project will allow rich gas sourced from Webb County to flow to Southcross’ processing and fractionation complex near Corpus Christi, Texas.

“We believe this pipeline is a key step in the next stage of Southcross’ growth that we expect will also include additional assets in the Eagle Ford,” said Corey Lothamer, Vice President of Gas Marketing and Supply of Southcross’ general partner. “We believe there are significant opportunities in extending our Eagle Ford rich gas footprint.”

The construction of the new pipeline is anchored by a commitment of new rich gas volumes onto the Southcross system. Advanced discussions are underway with other producers regarding additional rich gas volumes.

Pipeline engineering, procurement and right-of-way purchasing is underway and the pipeline is expected to be in service in the fourth quarter of 2014. The project cost is estimated to be approximately $125 million. In conjunction with the announcement of this project, Southcross has executed an amendment with its senior secured credit facility lenders that permits construction of the pipeline.

A map of the anticipated route for the new pipeline is available on the Southcross website at www.southcrossenergy.com.

Forward-Looking Statements

This press release includes certain statements that are forward-looking within the meaning of the federal securities laws. These statements relate to, among other things, growth projects, volume commitments and capital expenditures. Forward-looking statements include, without limitation, any statement that may project, indicate or imply future results, events, performance or achievements, and may contain the words “expect,” “intend,” “plan,” “anticipate,” “estimate,” “believe,” “will be,” “will continue,” “will likely result,” and similar expressions, or future conditional verbs such as “may,” “will,” “should,” “would” and “could.” Although Southcross believes the assumptions on which these forward looking statements are based are reasonable, Southcross can give no assurance they will prove to be correct. Forward-looking statements contain known and unknown risks and uncertainties (many of which are difficult to predict and beyond management’s control) that may cause Southcross’ actual results in future periods to differ materially from anticipated or projected results. An extensive list of specific material risks and uncertainties affecting Southcross is contained in its Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on April 15, 2013 and other documents and reports filed from time to time with the SEC. Any forward-looking statements in this press release are made as of the date hereof and Southcross undertakes no obligation to update or revise any forward-looking statements to reflect new information or events.

About Southcross Energy Partners, L.P.

Southcross Energy Partners, L.P. is a master limited partnership that provides natural gas gathering, processing, treating, compression and transportation services and NGL fractionation and transportation services. It also sources, purchases, transports and sells natural gas and NGLs. Its assets are located in South Texas, Mississippi and Alabama and include three gas processing plants, two fractionation plants and approximately 2,740 miles of pipeline. The South Texas assets are located in or near the Eagle Ford shale region. Southcross is headquartered in Dallas, Texas. Visit www.southcrossenergy.com for more information.

Source: Southcross Energy Partners, L.P.

Southcross Energy Partners, L.P.
Kristin Donnally, 214-979-3720
Investor Relations
investorrelations@southcrossenergy.com