El Paso Corporation's subsidiary, El Paso Natural Gas (EPNG) has closed companion open seasons and plans to provide natural gas transportation to MGI Supply and Mexicana de Cobre.
EPNG will provide mainline 95,000 dekatherms per day (Dth/d) of natural gas transportation to MGI, a subsidiary of Pemex Gas, and 90,000 Dth/d to Mexicana de Cobre, a subsidiary of Grupo Mexico.
The two open seasons which were closed April 29, 2011, offered up to 200,000 Dth/d of existing capacity held by EPNG on its south mainline, extending from the Waha Hub in West Texas to EPNG’s Willcox compressor station in Cochise County, Arizona.
Another open season offered 185,000 Dth/d of proposed additional capacity from the Willcox station to two delivery points, also in Cochise County, at the U.S.-Mexico border.
The Willcox lateral expansion will involve the utilization of existing facilities at the Willcox compressor station, following pipe and compression modifications.
This project is expected to generate more than $30m of annual revenues when fully in service with estimated capital of $18m.
The project is planned to be in service by April 2013, following approval from Federal Energy Regulatory Commission.