Published 16 November 2012
US-based pipeline transportation and energy storage company Kinder Morgan Energy Partners and Kinder Morgan owned business unit El Paso Natural Gas (EPNG) has signed a 25 year agreement to build a new gas pipeline to supply natural gas to Mexico.
As per the terms of the agreement, Sasabe Pipeline Company, an affiliate of EPNG, will supply about 200 million cubic feet per day gas through the proposed 36in and 96.5km long Sasabe lateral pipeline.
Sasabe pipeline will extend from EPNG's existing south mainlines, near Tucson, Arizona to the US-Mexico border, ending at
Sasabe, in Arizona, from there it will be interconnected with the international border crossing 36in and 820km long natural gas pipeline to be constructed in Mexico by Sempra International.
Kinder Morgans Natural Gas Pipelines West Region president Mark Kissel said the gas supply agreement will support the development of the $200m Sasabe lateral pipeline and provide low priced US gas to Mexico.
"In addition, the project will help Mexico meet its environmental goals of converting existing fuel-oil-fired power generation plants to efficient, clean burning natural gas and also having natural gas supplies available for new plants in the future," Kissel added.
Subject to approval of Federal Energy Regulatory Commission Construction and Presidential permit, construction of the Sasabe lateral pipeline is expected to begin in the first quarter of 2014 and operations are slated to commence in September 2014.
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