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New Texas NatGas Pipeline Would Feed Spectra's Proposed Valley Crossing, Mexico

Pomelo Connector LLC has filed at FERC for permission to construct a 14-mile pipeline in Texas connecting Texas Eastern Transmission LP (Tetco) with the proposed Valley Crossing Pipeline LLC in support of a system that would enable export of U.S. natural gas to Mexico.

The 30-inch diameter Pomelo would run from Tetco's Petronila Station in Nueces County to its Valley Crossing interconnect near Agua Dulce. Valley Crossing Pipeline LLC, a unit of Spectra Energy, has proposed a Texas pipeline and U.S.-Mexico border crossing to serve power generation and other gas demand in Mexico as well as in Texas [CP17-19].

Upon in-service of the pipeline, Pomelo Connector would abandon by lease to Tetco all of its capacity, the pipeline told the Federal Energy Regulatory Commission [CP17-26]. Separately, Tetco would apply for a certificate application modification [CP15-499] in order to acquire the capacity as well as make rate changes and facility modifications. Pomelo is a unit of Canyon Midstream Partners II LLC.

The 400,000 Dth/d Pomelo Connector would " located in close proximity to other pipeline systems in Nueces County, including NET Mexico Pipeline LP, which has an existing header in the area that connects to various other pipeline systems," Pomelo told FERC. "By interconnecting with one or both of these header systems, the Pomelo Connector Pipeline will provide direct access to numerous downstream pipeline facilities for gas flowing on Pomelo's facilities."

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