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Natural gas

Joint Venture to Transport Natural Gas Liquids to Mexico

Strategic Insights

— 1 min read

Three major pipeline companies, Mid-America Pipeline Company, Amoco Pipeline Company, and Navajo Pipeline Company, have signed a memorandum of understanding to form a joint venture that will provide pipeline transportation of natural gas liquids to Pemex Gas y Petroquimica Basica's Mendez terminal in northern Mexico. The joint venture aims to develop a safe and efficient transportation system to meet the current and future natural gas liquids demand in the region. The project is expected to strengthen MAPCO NATURAL GAS LIQUIDS INC.'s position as a preferred provider of natural gas liquids transportation service in North America.

Key Takeaways:

  • The joint venture will provide pipeline transportation of natural gas liquids to Pemex Gas y Petroquimica Basica's Mendez terminal in northern Mexico.
  • The project aims to develop a safe and efficient transportation system to meet the current and future natural gas liquids demand in the region.
  • The joint venture will combine the strengths of each company to develop a safe and efficient transportation system.
  • MAPCO NATURAL GAS LIQUIDS INC. will be the primary operator of the joint venture.
  • The project is expected to expand MAPCO's relationship with Pemex/PMI and pursue other opportunities to participate in Mexico's economic growth.
  • Amoco Pipeline's growth strategy includes participating in attractive transportation opportunities, and this project is consistent with that strategy.
  • Navajo Pipeline Company has a strong relationship with Pemex/PMI in northern Mexico, which began in 1990.
  • Pemex has had important commercial relationships with the three U.S. companies over many years.
  • The joint venture will build on the companies' existing relationships and create new opportunities for collaboration.

Statistics:

  • The joint venture will transport natural gas liquids to Pemex Gas y Petroquimica Basica's Mendez terminal in northern Mexico.

*/mapco NATURAL GAS LIQUIDS INC. operates over 3,000 miles of natural gas liquids and ammonia pipelines in North America.

  • The company is the fourth-largest retail propane distributor in the United States, with over 1,000 employees.
  • Amoco Pipeline Company operates over 1,500 miles of crude oil and natural gas pipelines in North America.
  • Navajo Pipeline Company has a 300-mile pipeline system in northern Mexico, Arizona, New Mexico, and West Texas.
  • Pemex is one of the largest oil companies in Latin America, with over 100,000 employees worldwide.

Sources:

  • Mid-America Pipeline Company
  • Amoco Pipeline Company
  • Navajo Pipeline Company
  • Pemex Gas y Petroquimica Basica
  • MAPCO NATURAL GAS LIQUIDS INC.
  • PRNewswire, August 25, 1995.

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