US 915 309-5794     MX 52.614.414.0466      info@pasonortepipeline.com     

Announcement

OCTOBER 10,2014

The Paso Norte Pipeline Project is a proposed international natural gas pipeline. It will deliver efficient, clean burning, and cost effective natural gas from the United States to a dynamic region of North Central Mexico; the western portion of the State of Chihuahua.

The proposed pipeline will originate and interconnect with the El Paso Natural Gas Southern Pipeline System at Deming, New Mexico; and proceed south to the international border of Columbus, N.M. and the Port of Palomas, Chihuahua. In Mexico, the pipeline will continue south and serve the communities of Palomas, Ascension, Casas Grandes, and Cuauhtemoc.

Paso Norte Pipeline Group is not affiliated with or a subsidiary of El Paso Energy, INC. or El Paso Natural Gas Company.


Paso Norte Market Analysis

Oil and gas industry law

Electric Industry Law

Design Specifics

A 40 mile pipeline is planned from El Paso Natural Gas' Southern System to the New Mexico/Chihuahua Border. This interconnection will be located either at EPNG's Afton, Florida or Deming Stations in New Mexico. The cost of this high pressure pipeline is estimated to be $60 million.

In Chihuahua, the first stage of the project will be service to the port and municipality of Palomas, Ascension, and Casas Grandes. Estimated length of this pipeline is 95 miles from the Border to Casas Grandes, Janos and Ascernsion.

The second stage of the pipeline will be from Casas Grandes to Cuauhtemoc. Estimated length with laterals is 190 miles.

Markets

Western Chihuahua's main sources of energy are propane, diesel, fuel oil, and electricity. A population of 500,000 without natural gas. The municipalities of Palomas , Ascension, and Casas Grandes (pop. 104,000) are without municipal service. The municipality of Cuauhtemoc (pop. 222,000) has been designate an Ecogas service area. However, distribution infrastructure has not been built since gas supply for the area is not currently available.

This region of Chihuahua is very agricultural, and is very dependent on pumping water from underground basins using electricity and diesel as a power source. The Paso Norte Pipeline Project will be supporting the CFE Autoabastecimiento (self-supply) initiative. This CFE rule allows a user/partner to set up an IPP for self use in the region or under the CFE Porteo program. The Porteo program allows an owner, full or part, of an IPP to receive electricity from the CFE anywhere in Mexico. An owner of an IPP in Western Chihuahua can receive electricity for his plant in Veracruz or Puebla at a transportation rate of 0.03554 pesos per kwh.

It is expected that natural gas availability in the region will also spur industrial economic growth and can be a source of redundant supply for the newly awarded CFE Encino to Topolobampo pipeline. For more information, please click on the Preliminary Market Study tab on the home page.

Apache Power Park

The new Energy Reform Laws, passed and approved by the Upper and Lower Houses of the Mexican Legislature and signed by President Pena this past year; have had a positive impact on the Paso Norte Pipeline Project.

The new secondary laws broaden the opportunities in natural gas marketing and transmission, but also change the electric market landscape of Mexico

New electric power generators will be allowed to supply directly to a large range of “Qualified customers” . These “Qualified customers” represent and wide variety of industrial plants, industrial groups, commercial and service companies located through Mexico. A new “Electric Market” is created and will be managed by CENACE. Transportation of Electricity will be managed by CFE, but private companies can also participate.

These new laws have paved the way for investment in privately owned power electrical generation plants in Mexico.

The Apache Power Park will be a 600+ acre industrial site dedicated to attracting 3 to5 gas fired electrical generating plants. These plants will be customers of the Paso Norte Pipeline Project in Western Chihuahua. Privately owned plants with long term leases in the power park utilizing the Porteo program to supply electicity to the Mexican Grid.

Contact

USA
Peter Momsen
Paso Norte Pipeline Group, INC
US 915 309-5794
Pmomsen@peoplepc.com
pmomsen@pasonortepipeline.com

MX
Alderete y Socios
(52) 614 414-0466
malderete@pasonortepipeline.com