Sierrita Gas Pipeline

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Sierrita Gas Pipeline is a natural gas pipeline in Arizona, USA and Mexico.[1]

Location

The pipeline runs from Tucson, Arizona, USA through the Mexican border, near the town of Sásabe.[2][3][4]

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Project Details

  • Operator: Kinder Morgan[5]
  • Owner: Kinder Morgan (35.00%), MGI Enterprises US LLC (35.00%), MIT Pipeline Investment Americas, Inc (30.00%)[5]
  • Parent Company: Kinder Morgan Energy Partners (35.00%)[6], Pemex (35.00%)[7], Mitsui & Co (30.00%)[5][8][9]
  • Capacity: 200 million cubic feet per day[10]
  • Length: 60 miles[10][11] (97 km)[12]
  • Diameter: 36 inches[11]
  • Cost: US$204 million[2][13][14]
  • Financing: US$200 million equity investment shared by Pemex, Kinder Morgan Energy Partners, Mitsui & Co[15]
  • Status: Operating[1]
  • Start Year: 2014[10][12][13]

Background

The $204 million natural-gas pipeline is 60 miles long, running from Tucson to the Mexican border near the town of Sásabe. The 36-inch-diameter pipeline connects to the Sásabe-Guaymas Gas Pipeline, a pipeline carrying natural gas to Mexican power plants in Sonora and Sinaloa.[2]

Opposition

In March 2014, the Federal Energy Regulatory Commission (FERC) gave the project its blessing. The commission acknowledged that re-establishing vegetation along the pipeline route might take an average of 76 years, based on the variety of native flora. But the commission concluded that, aside from affecting the endangered Pima pineapple cactus, building and operating the pipeline would pose no significant harmful environmental impacts. The finding is hotly disputed. The Pima County Administrator demanded more than $16 million from Kinder Morgan to address various impacts for which he says FERC is not requiring enough remediation, ranging from environmental impacts to anticipated road repairs to increased costs for the county medical examiner to handle the bodies of additional undocumented migrants who may die in the desert while using the pipeline's right of way. Ranchers, environmental and conservation groups, and the Tohono O'odham Nation also fought the pipeline route, citing concerns about increased smuggling, erosion, and damage to the Tohono O'odham's sacred sites.[2]

Expansion Projects

Puerto Libertad Expansion Project

In April 2020, Kinder Morgan's subsidiary Sierrita Gas Pipeline officially placed an expansion project into commercial service.[1]

According to Platts Analytics, the expansion − which increased capacity on the Sierrita Pipeline from 200 MMcf/d to 627 MMcf/d − was expected to help feed pent-up demand in the state of Sonora, and to serve future demand from projects such as the proposed Mexico Pacific and AMIGO LNG terminals near the city of Puerto Libertad in Sonora state.[1]

Puerto Libertad Expansion Project Details

  • Operator: Sierrita Gas Pipeline[1]
  • Parent Company: Pemex (35.00%)[7], Kinder Morgan Energy Partners (35.00%)[6], Mitsui & Co (30.00%)[8][5]
  • Capacity: 427 million cubic feet per day[1]
  • Length:
  • Diameter:
  • Status: Operating[1]
  • Start Year: 2020[1]

Sierrita Pima Expansion Project

The Sierrita Pima expansion was intended to increase US natural gas exports into northwest Mexico by adding compression capacity; no additional miles of pipeline were added.[16]

Sierrita Pima Expansion Project Details

  • Operator: Sierrita Gas Pipeline[16]
  • Parent Company: Pemex (35.00%)[7], Kinder Morgan Energy Partners (35.00%)[6], Mitsui & Co (30.00%)[8][5]
  • Capacity: 320 million cubic feet per day[16][17]
  • Length: 0.0 miles[16]
  • Cost: US$56 million[16]
  • Status: Operating[17]
  • Start Year: 2020[16][17]

Articles and resources

References

  1. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Sue Sitter, North American gas midstream sector prepares for consequential earnings season, S&P Global, April 17, 2020
  2. 2.0 2.1 2.2 2.3 Bob Ortega, Proposed gas pipeline divides southern Arizona valley AZCentral.com, May 31, 2014
  3. "Sierrita natural gas pipeline controversy in Altar Valley". Arizona Daily Independent. April 21, 2014.
  4. "Construction Underway On Arizona Cross-Border Pipeline Expansion". Fronteras. May 3, 2019.
  5. 5.0 5.1 5.2 5.3 5.4 "Form 10-K: Kinder Morgan (p 100)". US Securities & Exchange Commission. December 31, 2018.{{cite web}}: CS1 maint: url-status (link)
  6. 6.0 6.1 6.2 "2022 Form 10-K: Kinder Morgan, Inc (p 7)" (PDF). US Securities & Exchange Commission. February 8, 2023.{{cite web}}: CS1 maint: url-status (link)
  7. 7.0 7.1 7.2 "2022 Form 20 F: Petróleos Mexicanos (p F-50)". US Securities & Exchange Commission. April 28, 2023.{{cite web}}: CS1 maint: url-status (link)
  8. 8.0 8.1 8.2 "Mitsui to participate in Natural Gas Pipeline Project in Arizona, U.S.A." Mitsui & Co, Ltd. July 22, 2013.{{cite web}}: CS1 maint: url-status (link)
  9. Asset Data, IJGlobal, accessed Aug. 27, 2020
  10. 10.0 10.1 10.2 "Kinder Morgan Places Sierrita Pipeline in Service to Provide Natural Gas to Customers in Mexico". Kinder Morgan. October 31, 2014.{{cite web}}: CS1 maint: url-status (link)
  11. 11.0 11.1 "Sierrita Gas Pipeline LLC (Sierrita)" (PDF). Kinder Morgan. Retrieved 2023-08-23.{{cite web}}: CS1 maint: url-status (link)
  12. 12.0 12.1 "Estatus de gasoductos: 4. Gasoductos concluidos en 2014 (p 7)" (PDF). Dirección General de Gas Natural y Petroquímicos. October 2017.{{cite web}}: CS1 maint: url-status (link)
  13. 13.0 13.1 "Sierrita Pipeline Comes Online, Adding to U.S.-to-Mexico NatGas Export Options". Natural Gas Intelligence. October 31, 2014.{{cite web}}: CS1 maint: url-status (link)
  14. "U. S. shipments of natural gas to Mexico are soaring". Akron Beacon Journal. October 8, 2013.
  15. Sierrita Gas Pipeline Project, IJGlobal, accessed Sep. 18, 2020
  16. 16.0 16.1 16.2 16.3 16.4 16.5 Natural Gas Data, Pipeline Projects Energy Information Agency, July 21, 2020
  17. 17.0 17.1 17.2 In the first half of 2020, about 5 Bcf/d of natural gas pipeline capacity entered service U.S. Energy Information Agency, Aug. 24, 2020

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