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NET Mexico Offering Expansion Capacity on Texas Intrastate

NET Mexico Pipeline Partners LLC is holding a nonbinding open season through Sept. 30 for expansion capacity on the NET Mexico Pipeline, which carries natural gas from the Agua Dulce Hub in South Texas to the Texas-Mexico border near Rio Grande City in Texas.

Responding to growing market demand, NET Mexico said it will add capacity through additional compression as well as add additional interconnection capacity at the Agua Dulce Hub.

The pipeline entered service ahead of schedule in late 2014 (see Daily GPI, Nov. 17, 2014). NET Mexico is an affiliate of NET Midstream. The pipeline is anchored by a long-term firm gas transportation agreement, for up to 2.1 Bcf/d, with MexGas Supply Ltd., a subsidiary of Pemex, the Mexican state-owned gas company. At the time it entered service, NET Mexico said the pipeline's design capacity of 2.3 Bcf/d could be expanded to 3.0 Bcf/d with additional compression.

NET Mexico offers intrastate service from Eagle Ford Midstream (also owned by NET), Enterprise Intrastate Pipeline, Enterprise Texas, Houston Pipe Line, Kinder Morgan Tejas, Conoco Lobo and Southcross. Service from Natural Gas Pipeline Company of America and Tennessee Gas Pipeline is also offered.

For information on the open season, contact Dave Marye, (713) 236-3615, david.marye@nexteraenergy.com; Duncan Rhodes, (713) 236-3619,  duncan.rhodes@nexteraenergy.com; or Mike Freeman, (713) 236-3607, michael.l.freeman@nexteraenergy.com.

Meanwhile, Spectra Energy Corp./Partners LP is working on its planned Mexico-focused Texas intrastate, a pipeline called Valley Crossing. The header system would run to the Texas-Mexico border where it would connect with another pipeline on the Mexican side (see Daily GPI, Aug. 3). Then there is the Nueva Era Pipeline, a project of Howard Midstream Energy Partners LLC and Mexico's Grupo Clisa. Construction is under way. Mexico's Comision Federal de Electricidad is the anchor shipper (see Daily GPI, June 17; Aug. 12, 2015).

More information about Mexico-focused infrastructure development is available in NGI's recently published special report on Mexico.

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