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FERC allows Kinder Morgan to max out gas export station at Mexico border

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FERC allows Kinder Morgan to max out gas export station at Mexico border

FERCallowed El Paso Natural Gas Co.LLC to increase the gas export capacity flowing into Mexico atborder-crossing facilities in Cochise County, Ariz.

The Monument90 border-crossing facilities are part of a network of assets used byKinder Morgan Inc.,the parent of El Paso, to serve domestic and international transportationcustomers. Kinder Morgan has been active in expanding at the U.S.-Mexico border andinside Mexico.

In aMarch 30 order, FERC amended El Paso's presidential permit and Natural Gas ActSection 3 authorization to set the maximum authorized capacity of the Monument90 facilities at 56,900 Mcf/d, subject to conditions. The previousauthorizations allowed exports of 14,300 Mcf/d on a firm basis, plus additionalquantities on a "best efforts basis" at customers' request. Thecurrent firm contracted capacity at the crossing is an average of about 34,000Mcf/d, according to El Paso, but exports may exceed that amount to coverprimary firm, alternate firm and interruptible deliveries.

ElPaso has four firm transportation service agreements that serve two customers,Comisión Federal de Electricidadand Mex Gas Supply SL, a subsidiary of PEMEXGas y Petroquímica.

ElPaso applied in May2015 for the amendment to its presidential permit. The original presidentialpermit authorizations were issued in 1940. In its application, El Paso said itwas simply asking FERC to clarify that it could export up to the physicalcapabilities of the facilities.

"ElPaso's proposed amendment to increase the authorized export capacity of theborder-crossing facilities to 56,900 Mcf per day will align El Paso'sauthorization with the capabilities of the Monument 90 facilities," FERCsaid in the order.

Nonew construction would be needed as part of the capacity expansion, so FERCsaid it does not have to conduct an environmental review. The Monument 90border crossing lies about eight miles east of Naco, Ariz. (CP15-493)