FERC approves new gas line to Mexico
Houston Pipe Line LP, a subsidiary of Energy Transfer Co., has won federal approval to build a pipeline that would ship up to 140 MMcfd of natural gas into Mexico from Texas.
According to a Presidential Permit issued by the US Federal Energy Regulatory Commission, the Edinburg Extension project calls for the construction of a 23-mile, 24-in diameter extension of Houston Pipe Line's Edinburg Lateral. The project would also include the installation of 703 ft of 24-in diameter pipeline beneath the Rio Grande River.
At the international border in the middle of the river, the line would cross into the City of Reynosa, Mexico from Hidalgo County, Tex. The pipeline would interconnect with a stub pipeline set to be constructed by Mexico's state-owned Pemex Pipeline system.
Gas would be sourced predominately from Texas, where natural gas output is rising thanks to development of the Eagle Ford shale and various formations in the Permian Basin, among other areas. Once in Mexico, the gas would be used to fuel gas-fired electric generation plants and potential industrial customers in northern Mexico.
Houston Pipe Line operates an extensive intrastate natural gas pipeline system, including more than 3,900 miles of pipeline in Texas.
Stabilis expands LNG supply capacity
Stabilis Energy has agreed to purchase substantially all of the US-based assets of Encana Natural Gas Inc. (ENGI), as part of an effort to increase its ability to deliver LNG to high-horsepower engines across North America.
ENGI, a wholly-owned subsidiary of Encana Corp., distributes LNG to customers in the oil and gas, mining, rail, marine, and industrial sectors. ENGI is based in Denver, Colo.
Stabilis is also purchasing ENGI's fleet of cryogenic rolling stock assets, including storage and regasification trailers, mobile fueling units, and other related equipment.
Once the transaction closes, Stabilis will operate one of the largest cryogenic rolling stock fleets in North America, with a footprint spanning 20 states.
The company also plans to open its first LNG production facility in George West, Tex., in January 2015 to service customers in the Eagle Ford shale.
The facility is being built as part of a joint venture with Flint Hills Resources LLC, a subsidiary of Koch Industries, to build up to five LNG production facilities targeting oilfield customers.
The George West facility will have the capacity to produce 100,000 gal/day of LNG. Stabilis is also considering LNG liquefaction plant locations in West Texas, North Dakota, and other major oilfield regions.
The purchase price of the ENGI deal was not disclosed. The transaction is set to close on Apr. 30, 2014.
