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New Mexico-Chihuahua Pipeline Holding Second Open Season

The Paso Norte Pipeline Group made a second call for formal commitments from shippers for its proposed 400-mile international natural gas pipeline project connecting Deming, NM, to power plants in Chihuahua and Durango, Mexico.

The proposed pipeline would interconnect with El Paso Natural Gas' southern pipeline system near Deming and run 40 miles south to the International Port of Entry at Columbus, NM/Palomas, Chihuahua and on into the interior of Chihuahua.

The announcement is intended to secure shipper agreements for long-term gas contracts with Mexico's government-owned electricity company, the Comision Federal de Electricidad (CFE). The CFE estimates that its gas needs for current and future electrical generating plants will be 380,000 MMBtu/d in 2009 and will increase to more than 500,000 MMBtu/d by 2013.

In October 2006 the Paso Norte Pipeline Project Group announced an extension of a binding open season for capacity on the proposed pipeline system (see NGI, Oct. 9, 2006). The project was a response to a bid for gas supply from the CFE for service to its Mapula power plant southwest of Chihuahua City and its Francisco Villa power plant southeast of Chihuahua City. The pipeline also would interconnect with the existing Sistema Nacional de Gasductos gas pipeline, owned by Mexico's national oil company, Petroleos Mexicanos, to provide service to the CC Norte power plant in Durango. In addition, gas would be delivered to the city of Cuauhtemoc west of Chihuahua and industrial parks in western Chihuahua.

More details on the open season are available on Paso Norte Pipeline Group's website at http://pasonortepipeline.com.

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