Enbridge puts Tex-Mex Valley Crossing natgas pipe into service (1)
(Reuters) - Enbridge Inc.'s $1.6-B Valley Crossing natural gas pipeline from Texas to Mexico entered service on Oct. 31.
The 165-mile (266-km) Valley Crossing project is designed to carry up to 2.6 billion cubic feet per day (Bcfd) of gas from Texas to help Mexico meet growing demand for power generation as utilities there shift away from plants powered by fuel oil and imported liquefied natural gas.
One billion cubic feet is enough to fuel about five million US homes for a day.
Valley Crossing connects in the Gulf of Mexico with the Sur de Texas-Tuxpan pipeline, which runs roughly 500 miles in Mexico. It is the biggest gas pipe between the two countries.
There are already about 20 pipelines that can move natural gas from the United States to Mexico with a total capacity of around 10.9 Bcfd, according to US energy data.
Energy analysts have said, however, that constraints on the Mexican side of the border have so far limited a big increase in US pipeline exports to Mexico.
Reporting by Scott DiSavino; Editing by James Dalgleish
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