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Energy Transfer to Provide Natural Gas to Mexican Utility

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Energy Transfer Partners LP has agreed to terms to supply natural gas for Mexico’s electric power needs.

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Energy Transfer subsidiaries Houston Pipe Line Co. (HPL) and Oasis Pipeline LP have entered into 15-year agreements with Comisión Federal De Electricidad (CFE), the Mexican agency handling Mexico’s electric power needs, to provide transportation services for 930,000 million cubic feet (MMcf) of natural gas per day.

To facilitate these agreements, Energy Transfer will use its existing pipeline infrastructure and will construct a new 24-in. pipeline from HPL’s pipeline located near Edinburg, Texas, to a new international border crossing near McAllen, Texas (Edinburg Extension). Additionally, the company will construct approximately 51 miles of 36-in. pipeline from its Robstown system in Nueces County, Texas, to its facilities located in Live Oak County, Texas (Nueces Crossover). The Edinburgh Extension and Nueces Crossover are anticipated to be in service during the fourth quarter of this year and first quarter of 2015, respectively.

“We are honored to team with CFE to help them meet the growing demand for natural gas-fired generation in Mexico,” said Roy Patton, senior vice president of commercial operations for Energy Transfer. “[Energy Transfer’s] extensive intrastate pipeline system provides CFE with geographical diversity and flexibility in sourcing its natural gas supplies. In addition to supporting new pipeline infrastructure, these agreements will generate upstream fee-based revenue for ETP’s existing intrastate pipeline network.”

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