Pipeline Operator TC Energy Seeks US Approval to Put US-Mexico Gas Pipeline in Service

(Reuters) — Canadian energy company TC Energy Corp.'s North Baja Pipeline LLC unit asked U.S. energy regulators on Thursday for permission to put parts of the North Baja natural gas pipeline expansion in Arizona and California into service.

The 86-mile (138-km) North Baja Pipeline System delivers natural gas produced from West Texas and the Rocky Mountains region to markets in both the Western U.S. and Mexico. The pipeline starts near Ehrenberg, Ariz., and ends near Ogilby, Calif., where it connects with a pipeline in Mexico. The system includes a lateral that delivers gas to an electric generating facility in Yuma, Ariz.

The 0.495-billion cubic feet per day (Bcf/d) North Baja expansion will supply more U.S. natural gas to Mexico, including to U.S. energy company Sempra Energy's Costa Azul LNG export plant in Mexico, which is under construction.

The roughly $2 billion Costa Azul project on Mexico's Pacific Coast will be able to turn about 0.43 Bcf/d of gas into LNG once it enters service around mid-2025.

One billion cubic feet of gas can supply about 5 million U.S. homes for a day.

The North Baja expansion cost an estimated $127 million, according to U.S. energy data.

In its filing with the U.S. Federal Energy Regulatory Commission (FERC), North Baja said FERC approved construction of the North Baja expansion in April 2022.

North Baja said it completed work on some facilities earlier this year and was now asking FERC for permission to put remaining facilities into service.

North Baja is a bidirectional pipeline that entered service in 2002. It can move gas from Arizona to California and Mexico and from Mexico to California and Arizona.

Before the 2023 upgrade, North Baja could move about 0.5 Bcf/d of gas south from Arizona to California and Mexico, and about 0.614 Bcf/d north from Mexico to California and up to 0.695 Bcf/d north from California to Arizona, according to federal energy data.


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