El Paso Natural Gas Co. (EPNG), owned by Kinder Morgan Energy Partners LP and Kinder Morgan Inc., has concluded a binding open season for a maximum of 145,000 Dth/d of available capacity on its South Mainline interstate natural gas transmission system. The approximately 750-mile South Mainline system extends from the Waha Hub in the Permian Basin of West Texas to California and serves markets in Texas, New Mexico, Arizona and northern Mexico. El Paso Electric Co., which is not affiliated with with the pipeline or its owners, has contracted with EPNG for an incremental 90,000 Dth/d of hourly firm capacity at maximum recourse rates under a 20-year term. El Paso Electric is currently served by EPNG. The new agreement will accommodate existing and planned additions to local generation by the utility. Expected in-service of the new capacity is Jan. 1, 2014.
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