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FERC gives thumbs up to Texas Eastern to build $137M expansion to serve Mexico

The Federal Energy Regulatory Commission authorized Texas Eastern Transmission LP to start building the South Texas Expansion project, or STEP, that will help export up to 396,000 Dth/d of natural gas to Mexican power markets.

The $137.3 million pipeline expansion project, which FERC approved in a certificate order on Feb. 15, and the related Pomelo pipeline project will provide Mexico's Comisión Federal de Electricidad with long-term firm gas transportation service. Texas Eastern, an indirect, wholly owned subsidiary of Enbridge Inc., applied for the STEP project in May 2015. The company has estimated an in-service date of Oct. 1.

The STEP project will consist of a new compressor station in Nueces County, Texas; upgrades to a compressor station in Matagorda County, Texas; and modifications to compressor facilities in Chambers, Orange and Brazoria counties in Texas. (FERC docket CP15-499)