Kinder Morgan Gas Natural de Mexico S. de R.L. de C.V. is holding a nonbinding open season through May 11 for incremental firm service on its 85-mile Mier-Monterrey pipeline. A $38 million expansion project would increase capacity from 640 MMcf/d to 840 MMcf/d and could be completed during the second quarter of 2017, the Kinder Morgan Inc. unit said. The project would consist of the installation of a new compressor station along the Mier-Monterrey pipeline near Cerralvo, Nuevo Leon, Mexico. "The proposed project utilizes our existing assets to provide a very low-cost option for additional capacity to transport natural gas produced in the United States to the growing industrial and power-generating markets in and around Monterrey, Nuevo Leon," said Kinder Morgan Natural Gas Midstream President Duane Kokinda. The pipeline entered service in 2003 and runs from the U.S.-Mexico border in Starr County, TX, to Monterrey, Mexico. The pipeline connects to a 1,000 MW power plant complex and also with the Petroleos Mexicanos natural gas transportation system. For information, visit www.kindermorgan.com.
Meridian LNG Holdings Corp. and E.ON Global Commodities SE (EGC), the trading unit of E.ON SE, have entered into a 20-year gas sales agreement under which EGC has agreed to purchase up to 2 million tons per annum (mtpa) of regasified LNG from Meridian LNG to be delivered at UK's National Balancing Point. Meridian LNG intends to deliver LNG through its planned Port Meridian import and regasification terminal. Under the terms of the gas sales agreement, EGC will also have the opportunity to purchase incremental volumes, should they be made available, of up to 750 MMcf/d, the estimated maximum daily throughput of the Port Meridian terminal. Meridian LNG previously signed a 20-year, 2 mtpa liquefaction term sheet with Magnolia LNG LLC, which owns the proposed Magnolia LNG facility in Lake Charles, LA (see Daily GPI, March 18). Meridian anticipates entering into a binding liquefaction tolling capacity agreement shortly, it said. The tolling agreement, together with related supply and pipeline agreements, is expected to provide 2 mtpa of LNG to Meridian LNG from early 2019. Magnolia LNG is a unit of Liquefied Natural Gas Ltd. , based in Perth, Western Australia.