Posted on 04/24/2015 5:10:06 AM PDT by thackney
Kinder Morgan said Thursday it was considering another expansion along a pipeline linking its natural gas system to Mexico.
The expansion would add another 200 million cubic feet of capacity along the Mier-Monterrey pipeline, which runs 95 miles from the U.S.-Mexico border near Starr County, Texas to Monterrey, Mexico. If Kinder Morgan moves forward, the project would add a new compressor station and boost total capacity along the line to 840 million cubic feet per day.
The Houston-based company said it would solicit commitments from shippers for new pipeline capacity between April 27 and May 11. Pipeline projects usually require a significant portion of capacity be filled by long-term commitments from customers before they move forward.
If shippers sign on, Kinder Morgan would likely turn dirt on the $38 million upgrade with a completion date of mid-2017. The project would provide the additional capacity by adding a new compressor station near Cerralvo, Nuevo Leon, Mexico.
Mexico has been a hot destination for U.S. gas thanks to a sweeping regulatory reform that has been gaining speed over the past year. Regulators in the country hope to use natural gas to supply cheaper, cleaner electricity to consumers. Mexico’s – and Latin America’s – shift toward natural gas has been a big topic of discussion at the ongoing IHS Energy CERAWeek conference.
Kinder Morgan has already expanded the Mier-Monterrey pipeline. The line was initially designed to initially transport up to 375 million cubic feet of gas per day and brought into service in 2003. Today, the line has a capacity of 640 million cubic feet per day.
The pipeline connects to a 1,000-megawatt power plant complex as well as to Mexican national oil company Pemex’s natural gas transportation system.
Others are likewise looking to make delivery of NGLs to Mexico in the near future.
There is a propane/butane delivery point just over the border in Juarez. Product comes from the West TX gathering/processing system.
I was part of a design/build team for their version of propane; a truck loading terminal in Hilaldgo, Texas in the late 90s.
Isn’t Mexico itself a large producer of NG?
How is this different from Keystone XL crossing international boundaries and the Executive Branch claiming a Godlike right to interfere with free trade? Because the ROW and pipeline is already there and this is just capacity enhancement?
Thanks
The border crossing would not change, so no new permit required by the State Department.
They are just adding more compression, pushing more through the same pipe at a higher velocity (resulting in more pressure drop and losses).
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