Business Journal Monday 18th November, 2013
NET Mexico Pipeline Partners LLC, an affiliate of Houston-based NET Midstream, has obtained presidential approval to build a natural gas pipeline build to move Eagle Ford natural gas into Mexico, according to a statement from the company. NET Mexico will build a 124-mile pipeline to move gas from nine points in Nueces County, Texas. The pipeline is anchored by a long-term gas transportation agreement for up to 2.1 billion cubic feet per day with MGI Supply Ltd., a subsidiary of the Mexican state-owned Pemex Gas y Petroquimica Basica, better known as PEMEX. Because the pipeline would cross an international border, it requires a presidential permit from the Federal Energy Regulatory Commission. The pipeline will travel under the Rio Grande River and connect with a Mexican pipeline owned by Gasoductos de Chihuahua, a joint venture between PEMEX and Sempra International, which is based in San Diego, Calif. The project is expected to be in service December 2014. Financial details of the project weren’t disclosed. “Development and financing of the pipeline is on schedule, with mainline construction beginning in the first quarter of 2014, and mechanical completion in October,” said NET Co-President Joe Gutierrez in the statement.