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Kinder Morgan unit to build nat gas pipeline in Mexico

Keywords: Tags  Kinder Morgan, Kinder Morgan Energy Partners, El Paso Natural Gas, pipeline, line pipe, natural gas, Mexico, power generation FERC

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 Morgan’s natural gas pipeline west region, said in a statement Thursday.

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.

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