FERC Gives Green Light For Gas Export Facility At Mexican Border

January 2014, Vol. 241 No. 1

The Federal Energy Regulatory Commission (FERC) issued a presidential permit and granting authorization allowing NET Mexico Pipeline Partners LLC to build a natural gas export facility with 2.1 Bcf/d capacity at the U.S.-Mexico border.

The export facility will be linked to a 120-mile, 42-inch intrastate pipeline that NET Mexico is planning to build from the Agua Dulce Hub in Nueces County, TX to the export facility. The facility would then deliver gas to Mexico’s Los Ramones Pipeline, which has yet to be built.

The FERC Order adds that the export facility was “necessary to meet the expanding fuel demand for power generation and industrial activity in Mexico” and to promote North American trade.

Mexico is a net importer of natural gas, mostly via pipeline from the U.S. Its natural gas demand is rising due to greater use of the fuel for power generation. According to the Energy Information Administration, U.S. natural gas exports to Mexico grew by 24% to 1.69 Bcf/d in 2012, the highest level recorded. Natural gas flows from U.S. pipelines accounted for about 80% of Mexico’s overall natural gas imports in 2012.

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