El Paso Corp. to expand natural gas system

El Paso Corp. said that its subsidiary, El Paso Natural Gas Company (EPNG), has successfully closed companion open seasons and signed long-term agreements to expand its system.

El Paso said it will expand its Willcox lateral and provide mainline 95,000 dekatherms per day (Dth/d) of natural gas transportation to MGI Supply Ltd., a subsidiary of Pemex Gas.

It will also provide 90,000 Dth/d to Mexicana de Cobre S.A. de C.V., a subsidiary of Grupo Mexico, Mexico's largest mining company and one of the world's largest copper producers, for power-generation projects in Mexico.

The two open seasons, which closed April 29, offered up to 200,000 Dth/d of existing capacity held by EPNG on its south mainline, extending from the Waha Hub in West Texas to EPNG's Willcox compressor station in Cochise County, Arizona, and 185,000 Dth/d of proposed additional capacity from the Willcox station to two delivery points, also in Cochise County, at the US-Mexico border.

Expansion of the Willcox lateral, anchored by 15-year contractual commitments, would utilize existing facilities at the Willcox compressor station after certain pipe and compression modifications are undertaken.

This project is expected to generate more than $30mn of annual revenues when fully in service with estimated capital of $18mn, the company said.