Tennessee Gas to Link with Mexico's Pemex
El Paso Energy's Tennessee Gas Pipeline unit agreed in principle
with Pemex Gas Y Petroquimica Basica, a subsidiary of Petroleos
Mexicanos, to interconnect facilities between the companies'
pipelines. The new facilities will be built from the end of
Tennessee's Donna lateral in Hidalgo County, TX, across the
international border to Pemex's existing facilities at Reynosa,
Mexico. The interconnect is expected to be in service by January
1999. The pipeline will be bi-directional throughout. For the first
few years, though, gas will flow north from Mexico to the United
"This interconnect strengthens Tennessee Gas Pipeline's
commitment to providing its customers with access to superior
supplies and premier markets," said John W. Somerhalder II,
Tennessee president. "This interconnect is an historic milestone
that provides Tennessee Gas Pipeline customers with transportation
options from the U.S.-Mexican border to the U.S.-Canadian border.
We look forward to the opportunities it will provide both Tennessee
Gas Pipeline and Pemex in the near term and in the future."
Pemex made a 10-year commitment for 185,000 dth/d of firm
capacity on Tennessee. The companies expect to execute final
agreements in the next few weeks and begin construction of the
facilities later this year after receiving regulatory approvals.
The eight miles of 24-inch pipe is expected to cost between $10
and $15 million. It is El Paso's second border crossing to Mexico.
The first was the Samalayuca Pipeline, which went into operation
Dec. 20 to supply gas to the Samalayuca power plant. The pipe moves
70 MMcf/d from the Hueco Compressor Station east of El Paso, TX, to
Samalayuca where gas is burned by the Samalayuca I and II power
plants. Additionally, the pipeline supplies the cities of Juarez
Joe Fisher, Houston
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