OREANDA-NEWS. May 13, 2014. Energy Transfer Partners, L.P. (NYSE: ETP) announced that Houston Pipe Line Company LP (“HPL”) and Oasis Pipeline, LP (both wholly owned subsidiaries of ETP), have entered into 15-year agreements with Comision Federal De Electricidad (“CFE”), the Mexican agency handling Mexico’s electric power needs, to provide transportation services for 930,000 MMBtu of natural gas per day.

To facilitate these agreements, ETP will utilize its existing pipeline infrastructure and will construct a new 24-inch pipeline from HPL's pipeline located near Edinburg, Texas to a new international border crossing near McAllen, Texas (“Edinburg Extension”). Additionally, ETP will construct approximately 51 miles of 36-inch pipe extending from its Robstown pipeline system in Nueces County, Texas to its facilities located in Live Oak County, Texas (“Nueces Crossover”). The Edinburgh Extension and Nueces Crossover are anticipated to be in service during the fourth quarter of this year and first quarter of 2015, respectively.

“We are honored to team with CFE to help them meet the growing demand for natural gas-fired generation in Mexico,” said Roy Patton, Senior Vice President of Commercial Operations for ETP. “ETP’s extensive intrastate pipeline system provides CFE with geographical diversity and flexibility in sourcing its natural gas supplies. In addition to supporting new pipeline infrastructure, these agreements will generate upstream fee-based revenue for ETP’s existing intrastate pipeline network.”