Kinder Morgan Inc.
) Kinder Morgan Texas Pipeline LLC (KMPT) has requested for an
approval from the U.S. federal energy regulators for transporting
additional natural gas from Texas to Mexico.
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Currently, the company is permitted to transfer 425 million cubic
feet per day (mmcfd) of natural gas on the Mier-Monterrey
pipeline, which is 95 miles long. Kinder Morgan has filed an
application with the U.S. Federal Energy Regulatory Commission to
alter a presidential permit and authorization under the Natural
Gas Act to enhance this capacity to 700 mmcfd.
The Mier-Monterrey pipeline moves through international borders
between Starr County, Texas, into Monterrey, Mexico, where it is
attached to a 1,000 megawatt power plant complex and linked with
Pemex-Gas Y Petroquimica Basica's natural gas transportation
The pipeline will require alterations to its non-jurisdictional
facilities upstream KMTP's cross-border facility to accommodate
the increase in its capacity. With Mexican state owned petroleum
company Petróleos Mexicanos or Pemex already using the pipeline
for gas deliveries, Kinder Morgan has requested for authorization
prior to June 1, 2013.
Initially, the firms that had spent on the construction of
terminals to import liquefied natural gas into the US are now
looking to renovate those and build new terminals to export gas
after the output increased. Kinder Morgan wants to benefit from
the increased fuel prices in global markets where it is nearly
five-to-six times the U.S. price. Thus, natural gas export is
gaining momentum and major companies have queued up to capitalize
on this domestic natural gas shale boom.
Kinder Morgan holds a Zacks Rank #3, which is equivalent to a
short-term Hold rating. However, there are other stocks in the
oil and gas sector -
Memorial Production Partners LP
Calumet Specialty Products Partners L.P.
EPL Oil & Gas, Inc
) - which hold a Zacks Rank #1 (Strong Buy) and are expected to