North Baja Pipeline operators seek shipper interest in expanded pipeline to move LNG into U.S. markets
TransCanada Corp. and Sempra Energy yesterday announced a joint open season to solicit shipper interest in a potential expansion of the current North Baja pipeline system.
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The system is comprised of TransCanada’s North Baja Pipeline (NBP), and Gasoducto Bajanorte Pipeline (GB) and Transportadora de Gas Natural de Baja California (TGN), both owned by Sempra Energy. These pipelines now serve natural gas demand in the Southwestern United States and Baja California, Mexico.
Proposed expansion
Shippers already have contracted for capacity to move natural gas from Sempra Energy’s Energía Costa Azul liquefied natural gas (LNG) receipt terminal now under construction in Baja California to downstream markets.
The proposed expansions contemplated by this open season would provide more pipeline capacity for the potential expansion of the Energía Costa Azul terminal or any other LNG terminals planned for the area. The open season will gauge shipper interest in moving volumes away from any other or expanded LNG regasification facilities.
The open season procedures offer a nondiscriminatory means of providing transportation access to markets throughout Baja California and to the Southwestern United States for any added installed regasification capacity. The two owners are working together to jointly market capacity on their respective pipelines. NBP will administer the open season; however, contracts will be executed by each pipeline as required.
Strong open season results expected
“North Baja is ideally situated to play a major role in transporting regasified LNG from an expanded terminal facility into various U.S. markets,” said Jeff Rush, general manager of TransCanada’s GTN and North Baja systems.
“With the high energy demand growth on both sides of the border and the increasing role of LNG, we expect a strong market response to this open season,” said Ryan O’Neal, vice president of Sempra Pipelines & Storage.
Current North Baja pipeline
The current 220-mile North Baja pipeline system, comprised of NBP and GB, went into service in 2002, while TGN went into service in 2000. It begins at an interconnection with El Paso Corp. natural gas pipelines near Ehrenberg, Ariz., and crosses into Southern California before entering the Mexican state of Northern Baja California.
The line parallels the U.S.-Mexico border for 140 miles before reaching an interconnection with TGN near Tijuana, Mexico.
As the result of a prior open season, the operators are getting needed permits and will reverse the flow direction of the pipeline. They will add the needed facilities to transport regasified LNG when the Energía Costa Azul LNG terminal comes online, perhaps as early as 2007.
