Editor Wotrg: The gas and oil boom is creating an export market. We sell Alaskan Oil mostly to the Japanese and Chinese. We import Mexican Oil and now are going to sell them natural gas. Meantime big coal has had war declared on it by the Obama Administration. Is big oil losing control of the energy market? Are we moving to a free market system, whereby no one oligopoly of corporate control can regulate price and supply?
Mexico is at long last allowing foreign investment and involvement in it’s petrochemical industry. The state owned klepto-cratic PEMEX obviously can not compete in a high tech environment.
Energy is greater than any other industry, excepting agriculture. So the great energy wars slog on. To the casual observer it is looking more like a free-for-all instead of a fixed fight. But then a casual observation can be completely wrong.
The battle here moves on to south eastern Mexico and South Texas and the Rio Grande Valley.
Today at 1:23 PM
March 25, 2014
A New Gas Pipeline for Texas-Tamaulipas
The U.S. Federal Energy Regulatory Commission (FERC) has approved a presidential permit for the construction of a new cross-border natural gas pipeline. Granted last week to Houston Pipeline Co., the new line is intended for the export of shale gas from Hidalgo County, Texas, to the Mexican border city of Reynosa, Tamaulipas.
According to the FERC permit, the pipeline will extend from the existing Edinburg Lateral in Texas, cross the border under the Rio Grande and then connect with the system operated by the national Mexican energy company Pemex. Once in Mexico, the gas is expected to be consumed by industrial and other customers in northern Mexico, where export-oriented factories called maquiladoras operate.
The pipeline will have the capacity to handle 140 million cubic feet of gas each day, a federal regulator said. The presidential permit also allows for the importation of gas.
Houston Pipeline Co. is part of Dallas-based Energy Transfer Partners, which operates thousands of miles of natural gas pipelines. The company is also regarded as one of the biggest distributors of propane gas in the United States.
The Texas-Tamaulipas project is reportedly among several proposed projects by energy companies to export gas from shale fields, which is extracted by the method of hydraulic fracturing, to buyers in Mexico and other countries.
Last fall, the FERC gave the green light to NET Mexico Pipeline Partners LLC of Houston, an affiliate of NET Midstream, to go ahead with a pipeline to send gas from Texas’ Eagle Ford Shale via Rio Grande City to Monterrey, Nuevo Leon, and then on to Aguascalientes in order to supply Mexico’s booming auto manufacturing industry. Again, the pipeline is planned to run underneath the Rio Grande.
According to NET Midstream, the new line will be financed to the tune of $665 million by a “syndicate of lenders” led by Mitsubishi UFJ Financial Group. Along with Spain’s BBVA Bancomer. Japanese capital is also involved in financing a connecting Mexican line developed by Gasoductos de Chihuahua on the other side of the border.
Sources: La Jornada, March 20, 2014. Reuters, March 20, 2014. Cgsh.com, January 14, 2014. Netmidstream.com/PR Newswire, December 9, 2013. El Diario de Juarez/New York Times, November 18, 2013. Gasoductos.com
Frontera NorteSur: on-line, U.S.-Mexico border news
Center for Latin American and Border Studies
New Mexico State University
Las Cruces, New Mexico
For a free electronic subscription