FERC Approves TC Energy's US-Mexico North Baja Natural Gas Pipeline Expansion

(Reuters) — Canadian energy company TC Energy Corp.'s North Baja Pipeline LLC unit has received permission from U.S. energy regulators to put the North Baja natural gas pipeline expansion in Arizona and California into service.

In a filing on Tuesday, the U.S. Federal Energy Regulatory Commission (FERC) clarified that its May 25 order included approval for all remaining facilities of the North Baja expansion.

The 495 MMcf/d North Baja expansion will supply more U.S. natural gas to Mexico, including to U.S. energy company Sempra Energy's Costa Azul LNG export plant in Mexico, which is under construction.

RELATED: Pipeline Operator TC Energy Seeks US Approval to Put US-Mexico Gas Pipeline in Service

The roughly $2 billion Costa Azul project on Mexico's Pacific Coast will be able to turn about 0.43 Bcf/d of gas into LNG once it enters service around mid-2025.

One billion cubic feet of gas can supply about 5 million U.S. homes for a day. The North Baja expansion cost an estimated $127 million, according to U.S. energy data.

FERC approved construction of the North Baja expansion in April 2022. North Baja said it completed work on some facilities earlier this year.

North Baja is a bidirectional pipeline that entered service in 2002. It can move gas from Arizona to California and Mexico and from Mexico to California and Arizona.

Before the 2023 upgrade, North Baja could move about 0.5 Bcf/d of gas south from Arizona to California and Mexico, and about 0.614 Bcf/d north from Mexico to California and up to 0.695 Bcf/d north from California to Arizona, according to federal energy data.

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