CHICAGO A Kinder Morgan
subsidiary plans to build a 60-mile, 36-inch-diameter natural
gas pipeline in Mexico as part of a $200-million project aimed
at bringing more U.S. natural gas to the country.
Houston-based El Paso Natural
Gas Co. LLC, owned by Kinder Morgan Energy Partners LP and
Kinder Morgan Inc., also in Houston, wants to construct a
lateral pipeline extending from existing company pipelines near
Tucson, Ariz., to the U.S.-Mexico border.
The Sasabe lateral pipeline
would then run through a new international border crossing and
be built in Mexico, Kinder Morgan said.
The project would create jobs in
Arizona and provide a market for U.S. natural gas in Mexico as
the country looks to move away from oil-fired power plants to
those fueled by natural gas, Mark Kissel, president of Kinder
Morgans natural gas pipeline west region, said in a
The Sasabe pipeline project
requires approval from the U.S. Federal Energy Regulatory
Commission (FERC) and a presidential permit because it crosses
an international border, Kinder Morgan said.
Applications for a FERC
certificate and presidential permit are expected to be filed in
early 2013, the company said. Assuming regulatory approval is
granted, construction on the pipeline could begin in the first
quarter of 2014, with the line entering service in September
2014, it added.