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Kinder Pipes Offering Texas Capacity to Serve Mexico

Kinder Morgan Inc. (KMI) is holding a nonbinding open season through March 10 for firm natural gas transportation service on its Kinder Morgan Border Pipeline LLC (KM Border) and Kinder Morgan Tejas Pipeline LLC (KM Tejas) to serve the growing demand for natural gas supplies in Mexico.

Up to 230,000 Dth/d of existing capacity on the system would become available on Jan. 1, 2018.      

KM Border owns and operates the Border Pipeline, a 24-inch diameter pipeline that interconnects with the Tejas Pipeline owned and operated by KM Tejas in South Texas.

The route of the Border Pipeline begins at the Tejas Pipeline near the King Ranch in Kleberg County, TX, and continues for 84 miles south to the municipality of Arguelles, Tamaulipas, Mexico, where the Border Pipeline interconnects with facilities owned by Centro Nacional de Control del Gas Natural (CENAGAS). The custody transfer point is at the U.S.-Mexico border.

“With the open access market in Mexico under way, we continue to receive significant interest in moving clean, abundant and cost-effective natural gas supplies from the United States down to Mexico,” said Kinder Morgan Natural Gas Midstream President Duane Kokinda. “This available capacity provides a ready-made solution for shippers seeking to serve that growing market.”  

The Tejas Pipeline is a 3,400-mile full-service intrastate system located primarily along the Texas Gulf Coast. Tejas also offers firm and interruptible sale, purchase, transportation and storage services. Treating and processing services are available through owned facilities as well as third-party contracts.

Kinder Morgan Midstream’s Larry Bell, vice president of commercial activities, told NGI, “I think we’re going to have a lot of marketing entities interested in this capacity to serve the market as the market opens in Mexico. You’re going to have a lot of those individuals involved in this. I do think we’ll have industrials themselves inquire about capacity...I think we’re going to have a lot of interest because I do think capacity on the U.S. side is the big hurdle for the Mexico industrials, or Mexico customers, to really have access to U.S. molecules.”

For open season information, contact Bell at larry_bell@kindermorgan.com, or (713) 369-8776.

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