Proposed Pipeline Projects
Proposed Pipeline Projects
Copyright 2009 Pipeliners Express All Rights Reserved. Factors Affecting Forward-Looking Statements. The Pipeliners Express web site contains statements as reported directly from the Company archives with respect to the Companies expectations or beliefs as to future events. These types of statements are "forward-looking" and are subject to uncertainties. These web pages contain certain "forward-looking statements" within the meaning of the federal securities laws. All statements, other than statements of historical fact included in these web pages are forward-looking statements. Such statements are based on management’s belief and assumptions using currently available information and expectations as of the date hereof, are not guarantees of future performance and involve certain risks and uncertainties. Although the Companies believe that the expectations reflected in such forward-looking statements are reasonable, the Companies cannot give any assurances that those expectations will prove to be correct. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Such differences could be caused by a number of factors including, but not limited to : Risks and uncertainties with respect to the actual quantities of petroleum products shipped in these pipelines and/or terminals; The economic viability of the Corporations, and there other customers; The demand for refined petroleum products in markets they serve; Their ability to successfully purchase and integrate additional operations in the future; Their ability to complete previously announced pending or contemplated acquisitions; The availability and cost of their financing; The possibility of reductions in production or shutdowns at refineries utilizing their pipelines and terminal facilities; The effects of current and future government regulations and policies; Their operational efficiency in carrying out routine operations and capital construction projects; The possibility of terrorist attacks and the consequences of any such attacks; General economic conditions; and Other financial, operations and legal risks and uncertainties detailed from time to time in their Securities and Exchange Commission filings. Cautionary statements identifying important factors that could cause actual results to differ materially from these Companies expectations are set forth from time to time in the Company Securities and Exchange Commission filings. All forward-looking statements included on these web pages and all subsequent written or oral forward-looking statements attributable to the Companies are expressly qualified in their entirety by these cautionary statements. The forward-looking statements speak only as of the date made, other than as required by law, and the Companies undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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This page was last updated: April 19, 2016
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Sierrita Lateral Project Map
In mid-November 2012, El Paso Natural Gas (EPNG), owned by Kinder Morgan Energy Partners, L.P. (NYSE: KMP) and Kinder Morgan, Inc. (NYSE: KMI), announced that it entered into a 25-year transportation precedent agreement in connection with plans to build a new lateral pipeline in Arizona to serve customers in Mexico with supplies of clean, efficient natural gas. This natural gas infrastructure project would not only benefit Arizona and the United States, but also help support cross-border energy development and a cleaner regional environment. The agreement supports the ongoing development of an approximately $200 million lateral pipeline, which would create new jobs in Arizona, and also provide a market for transporting abundant, low-priced U.S. gas production to Mexico. In addition, the project will help Mexico meet its environmental goals of converting existing fuel-oil-fired power generation plants to efficient, clean burning natural gas and also having natural gas supplies available for new power plants in the future.
Terms call for EPNG, acting through its affiliate Sierrita Gas Pipeline LLC (formerly Sasabe Pipeline Company), to provide approximately 200 million cubic feet per day of firm transportation capacity via a new, 36-inch diameter lateral pipeline that would extend approximately 60 miles from EPNG’s existing south mainlines, near Tucson, Ariz., to the U.S.-Mexico border, terminating at Sasabe, Ariz. The proposed Sierrita Lateral Pipeline would interconnect via a new international border crossing with a new 36-inch diameter natural gas pipeline to be built in Mexico. Subject to regulatory approvals, construction of Sierrita’s proposed lateral pipeline would begin in the first quarter of 2014, with anticipated in-service in September 2014.
Mexico’s Comisión Federal de Electricidad (CFE) awarded two contracts to Sempra International’s Mexican business unit to construct, own and operate an approximately 500-mile (820 kilometers), $1 billion pipeline network connecting the northwestern states of Sonora and Sinaloa. Sierrita’s proposed lateral pipeline would interconnect with this pipeline network. CFE specified that a new U.S. pipeline would be required to terminate at Sasabe and connect existing natural gas transmission infrastructure in the United States to the planned pipeline in Mexico.
When Sierrita initiated the pre-filing process, two potential routes were identified: an eastern route that runs through the Buenos Aires National Wildlife Refuge (BANWR), and a western route that would be routed to avoid the BANWR. The consideration of the eastern route on the BANWR was driven mainly by the fact that the route would be co-located along the existing State Highway 286 and parallel to an existing low voltage power line. However, recognizing the environmental sensitivities and permitting/siting restrictions associated with constructing a pipeline through a national wildlife refuge, Sierrita was committed to working with the BANWR management. After extensive work and consultation with both the local BANWR management, as well as regional and national management of the National Wildlife Refuge System, the BANWR has indicated that it will not find Sierrita’s project compatible with the mission of the refuge, which will effectively deny Sierrita the ability to permit the eastern route. Therefore, Sierrita has determined that the western route, which avoids the BANWR entirely, is the preferred route. Sierrita is committed to working with the landowners and other stakeholders affected by the western route.
Construction and operation of interstate pipelines and related facilities may proceed only after the FERC finds that a proposed project is in the public interest and necessity. The Sierrita lateral also requires a presidential permit, issued by the U.S. Department of State, for an interconnection/border crossing at the international boundary at Sasabe.
On Feb. 7, 2013, the project filed a full certificate application with the FERC and on Feb. 8 filed its presidential permit application. BACK TO TOP
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©2010 Pipeliners Express
