Paso Norte Pipeline Group Inc. (PNP) is holding a 60-day open season for shippers interested in accessing markets in western Chihuahua, Mexico, on a proposed international gas pipeline from New Mexico to Chihuahua that would serve demand for gas among power generators.

Originating from El Paso Corp.’s Southern System near Deming, NM, the pipeline would enter Chihuahua near the Columbus, NM-Palomas, Chihuahua International Port of Entry. The planned route follows a natural valley between mountain ranges. The 440-mile high-pressure pipeline is estimated to cost US$600 million, including compressor stations and storage facilities in the United States and Mexico, PNP said.

The initial design capacity is 450 MMcf/d with provisions to increase capacity to support future development needs of Mexico’s Comision Federal de Electricidad (CFE), Petroleos Mexicanos (Pemex) and those of western Chihuahua.

“PNP believes that a major pipeline from Deming, NM, to the Chihuahua citygate will have a positive impact on the state of Chihuahua and Mexico,” the company said. “This pipeline would serve a greater number of customers in Chihuahua than any other proposed site. It would also serve the growing needs of the CFE with an interconnect to the Pemex pipeline south of Chihuahua City.”

PNP held its second open season for the project two years ago (see Daily GPI, May 2, 2008). In October 2006 PNP announced an extension of a binding open season for capacity on the proposed pipeline (see Daily GPI, Oct. 9, 2006).

More information about the project can be located at www.pasonortepipeline.com.

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