El Paso to expand gas export line to Mexico

Christopher E. Smith
OGJ Pipeline Editor

HOUSTON, May 5 -- El Paso Natural Gas Co., a unit of El Paso Corp., has closed companion open seasons and signed 15-year transport agreements to expand its Willcox lateral and provide mainline 95 MMcfd natural gas transportation to Pemex Gas unit MGI Supply Ltd. and 90 MMcfd to Grupo Mexico unit Mexicana de Cobre SA de CV for electric power generation projects in Mexico.

The open seasons offered as much as 200 MMcfd of existing gas capacity on El Paso’s south mainline, extending from the Waha Hub in West Texas to EPNG's Willcox compressor station in Cochise County, Ariz., and 185 MMcfd of proposed additional capacity from the Willcox station to two delivery points, also in Cochise County, at the US-Mexico border. The expansion will use modified existing facilities at the Willcox compressor station.

Pending regulatory approval, El Paso expects the project to enter service by Apr. 1, 2013.

El Paso expects the project to generate more than $30 million/year of revenue when fully in service on estimated capital expenditures of $18 million.

Contact Christopher E. Smith at [email protected].