El Paso sent out a request last week for potential shippers onits proposed Yuma Lateral to get their plans in order. The project,which will serve new gas-fired power generation in Sonora and BajaCalifornia, Mexico, includes a broad range of possibilities interms of size and location.

So far, the project parameters suggested have ranged from a40,000 MMBtu/d project to 470,000 MMBtu/d with different deliverypressures, different delivery points and various border crossings,said El Paso’s Jerry Strange.

In preparation for the Comision Federal de Electricidadscheduled bidding on new power generation later this month, El Pasohas prepared a number of different case studies showing variousincremental rates for firm transportation on the project. The casestudies are based on a delivery pressure at the U.S.-Mexico borderof between 500 psig and 700 psig. Some are based on proposeddelivery point to be located south of Yuma, AZ, near San Luis RioColorado, Sonora. Others are for deliveries to the internationalboundary at a proposed delivery point west of Yuma in the directionof Mexicali, Baja California Norte.

The average pipeline length in all cases is about 94 miles andthe costs range from $61 million to $143 million.

Southwest Gas Corp. basically ignored El Paso’s open season lastyear on the Yuma lateral, according to spokesman for the LasVegas-based utility. “If it ever becomes a reality, there is apossibility we could use some of the added gas supplies to meetsome of our future growth needs in Arizona.”

Southwest thinks that the project is very expensive,particularly without an anchor load, such as merchant electricgenerating plants. Southwest has no plan to take an equity interestin the project, the spokesperson said.

“At this time we don’t have those additional capacity needs.Right now El Paso’s existing line to us is meeting all of ourneeds.” For more information on the Yuma project contact JerryStrange at (915) 496-3139.

Richard Nemec

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