Houston-based NET Mexico Pipeline Partners LLC has asked FERC for the green light to build border-crossing facilities to export natural gas from the United States to Mexico.
The company requested that the Federal Energy Regulatory Commission (FERC) issue a permit for the connection by October.
MGI Supply Ltd. would be the anchor shipper on the NET Mexico facilities, according to the application. MGI Supply will use its existing Department of Energy (DOE)/Office of Fossil Energy authorization to export gas under its transportation agreement with NET Mexico. It said no other permits from DOE will be required for it to export gas as a shipper on NET Mexico.
MGI Enterprises USA LLC, which is an affiliate of MGI Supply, is expected to become a new minority equity member of NET Mexico in the near future, NET Mexico said. MGI Enterprises is a newly formed indirect subsidiary of Pemex Gas y Petroquimica Basica, a subsidiary of Petroleos Mexicanos, the Mexican state-owned petroleum company. NET Mexico and MGI Enterprises have not finalized a partnership agreement yet.
The border-crossing facilities, which will cost about $2.7 million, will consist of about 1,400 feet of 48-inch diameter pipeline located at the center of the Rio Grande River in Starr County, TX. They will have a design capacity of 2.1 Bcf/d and a maximum allowable operating pressure of 1,480 psi.
NET Mexico said the border-crossing facilities will be a “relatively small link” in a much larger project involving the construction of an intrastate pipeline under the jurisdiction of the Texas Railroad Commission. Upstream of the border-crossing facilities, NET Mexico plans to construct a 124-mile, 42-inch diameter nonjurisdictional intrastate pipeline with an initial capacity of 1 Bcf/d in the first year, then ramping up to a capacity off 2.1 Bcf/d in the second year of operation. The pipeline will be placed into service in December 2014, the company said.
Although NET Mexico intends to initially only transport Texas-sourced natural gas in intrastate and foreign commerce, it said it subsequently will make all the necessary filings to enable it to provide Natural Gas Policy Act Section 311 transportation service on an interruptible basis on behalf of interstate pipelines.
Mexico’s imports of U.S. gas have reached new highs (see NGI, March 18) and are predicted to climb (see NGI, May 27) as multiple pipeline projects are planned to carry gas across the border (see NGI, Feb. 11).
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