New US pipeline to boost fuel exports to Mexico

Kinder Morgan, which operates this terminal in Pasadena, says it is ready to move ahead with its 500-mile natural gas pipeline from West Texas to the Corpus Christi area.
Kinder Morgan, which operates this terminal in Pasadena, says it is ready to move ahead with its 500-mile natural gas pipeline from West Texas to the Corpus Christi area.

Houston pipeline operator Kinder Morgan plans to boost capacity along a pipeline between El Paso and Tucson that will allow customers to increase exports of gasoline and diesel to Mexico.

In a Thursday afternoon statement, Kinder Morgan announced that the company began an open season to book capacity as part of an expansion project on the eastern end of its SPFF Pipeline.

The project will allow refiners and fuel companies to move an additional 7,500 barrels per day of Mexican-grade gasoline and diesel from El Paso to a Kinder Morgan storage terminal in Tucson.

Kinder Morgan is boosting capacity along the refined products pipeline by expanding the pump capability at the company’s El Paso Station.

Kinder Morgan is giving potential customers until 5 p.m. on June 24 to book capacity. If the open season is successful, Kinder Morgan estimates that the expansion capacity will be in service by Feb. 1, 2020.

The expansion project comes at a time of growing demand for transportation fuels in Mexico and sagging domestic production.

Kinder Morgan and its subsidiary Tennessee Gas Pipeline Company own and operate pipelines that move natural gas to Mexico.

Founded in 1997 and headquartered in Houston, Kinder Morgan has more than 11,000 employees across the United States. The company reported making a $556 million profit on $3.4 billion of revenue during the first quarter.

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