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Oasis Pipe Proposes Border-Crossing Facilities, Expansion

Affiliates Oasis Pipeline LP and Oasis Pipe Line Co. Texas LP have asked FERC for Section 3 Natural Gas Act authorization to build and operate pipeline facilities at the U.S.-Mexico border to export gas for use by gas-fired electric generation plants and industrial customers in northern Mexico. The border-crossing facilities are proposed as part of a much larger expansion of the Oasis system.

The proposed border facilities would transport approximately 600 MMcf/d from near the Town of Clint, TX, in El Paso County, to the state of Chihuahua, Mexico. The Oasis affiliates, which are owned by Dallas-based Energy Transfer Partners LP, have asked the Federal Energy Regulatory Commission to expeditiously approve their request to move forward on the $3.6 million "Clint Export Project."

In addition, the Oasis companies said they are planning to construct 188 miles of 36-inch diameter pipeline to extend the intrastate Oasis pipeline system from the Waha Hub in West Texas to the proposed border-crossing facilities in El Paso County. This portion of the project would be subject to the approval of Texas regulators.

After clearing the border-crossing facilities, the gas would be delivered to Tarahumara Pipeline S de RL de CV, which is jointly owned by Energy Transfer Mexicana LLC and Fermaca Pipeline del Altiplano S de RL de CV, for further transportation to power generators and industrial customers in the vicinity of Chihuahua, Coahuila and Durango, Mexico.

Another Energy Transfer Partners affiliate, ETC Marketing Ltd., has received approval from the Department of Energy to export natural gas to Mexico, the affiliates reported.

The existing Oasis pipeline extends from the Waha Hub to Waller County, TX. While Oasis Pipe Line Co. Texas LP owns the Oasis pipeline system, it leases 100% of the capacity to Oasis Pipeline LP, which is responsible for commercial operation of the pipeline.

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