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Frequently Asked Questions Who owns North Baja Pipeline? North Baja Pipeline LLC, with operations headquarters in Ehrenberg, Arizona, is owned by Gas Transmission Northwest Corp. (GTN), based in Portland, Oregon. GTN was purchased by TransCanada in November, 2004.TransCanada is one of North America 's leading natural gas transmission and power services companies. TransCanada's network of approximately 26,000 miles of pipeline transports the majority of Western Canada's natural gas production to key Canadian and U.S. markets. A growing independent power producer, TransCanada owns or has interests in approximately 7,700 megawatts of power generation in Canada and the United States. What will North Baja do to expand its operations? The North Baja Pipeline Expansion Project involves the reversal of flow direction and expansion of North Baja’s existing natural gas transmission system in California and Arizona. This means the pipeline will primarily import natural gas from Mexico rather than exporting it.Liquefied natural gas (LNG) entering North America via one new terminal (and potentially other terminals) in Baja California, Mexico, will be stored, regasified, and transported through Sempra Energy Mexico’s pipeline (Gasoducto Bajanorte) to points along that system and into North Baja’s system at the U.S.-Mexico border. TransCanada does not own any pipeline assets in Baja California, Mexico.
The second pipeline, called a "loop,” will be between 36 and 48 inches in diameter. The size will be determined by the number of terminals built in Baja California. The Expansion will include a two-mile, 36-inch-diameter interconnect from North Baja’s existing pipeline south of Blythe, California, to Southern California Gas Company’s (SoCal) compressor station on Arrowhead Avenue in Blythe, California. The project includes the addition of a meter station at the SoCal compressor station and modifications to North Baja’s Ogilby Meter Station and Ehrenberg Compressor Station to accommodate the reversal of flow direction. What are the benefits of the Expansion? A new source of natural gas for Imperial County (from LNG) and a new way to transport that gas provides economic development opportunities to Imperial County that did not previously exist. Pipeline capacity to Imperial Valley is currently constrained. New industry that requires significant amounts of natural gas currently cannot locate in the Valley. More natural gas provides the potential for new businesses and jobs.
How will the affected counties benefit? Current annual property taxes are listed below.
If the Expansion proceeds as anticipated (as additional LNG terminals in Mexico are built), the projected property taxes are:
Where are the target markets for the natural gas being shipped on North Baja? Southern California, including Imperial County, the Los Angeles-to-San Diego corridor, and Arizona.How does California benefit? The pipeline will provide a clean, economical, and reliable way for southern California, including Imperial County, to meet its rapidly rising demand for energy. A new supply source will offset supply declines from traditional gas-producing areas, including the Permian and San Juan Basins, which are the primary sources of gas on the El Paso pipeline system currently serving southern California.An additional source of natural gas is projected to moderate natural gas price increases as traditional sources of gas supply decline. Are there any benefits to the U.S. in general? The North Baja Expansion will provide another source of clean-burning natural gas supply to southern California and the Southwest.Increased use of natural gas will reduce emissions in the southern California air basin, including Imperial County . It will also be a factor in reducing emissions in the air basin shared by Mexico and the United States as more industries convert from higher-emission fuels like fuel oil and diesel. As Mexican industries convert to natural gas, they can reduce their air pollutant emissions by as much as 75 percent. Where will the gas come from? LNG from various Pacific Rim countries will be offloaded at one or more terminals off the coast of Mexico. One LNG terminal is under construction on the west coast of Baja California, and two more companies are seeking permits. When the first terminal is completed in late 2007, ships carrying LNG will arrive every few days to discharge their loads into storage and regasification facilities. That natural gas will flow into Sempra’s Gasoducto Bajanorte pipeline, which connects with North Baja.What route will the pipeline take? The 80-mile North Baja Pipeline system begins at an interconnection with Sempra’s Gasoducto Bajanorte at the U.S.-Mexico border near the Ogilby Road exit from Interstate 8 in Imperial County. It extends north through Imperial and Riverside counties and crosses under the Colorado River into Arizona at Blythe, California. The second pipeline will be constructed immediately adjacent to the first line in the existing right-of-way.What is the schedule? Segments of pipeline looping will be constructed on a schedule coinciding with the availability of gas from the new LNG terminals. The first phase of expansion is expected to be in service by the fourth quarter of 2008.The Expansion Project will be regulated by the Federal Energy Regulatory Commission (FERC), which will, in cooperation with the California State Lands Commission and Bureau of Land Management, conduct the environmental review. Formal public scoping meetings prior to the preparation of a Draft Environmental Impact Statement were held in the fall of 2005. FERC and the California State Lands Commission 1 prepared a Draft Environmental Impact Statement and issued it for comment in September of 2006. Public meetings were held during the 90-day comment period. The comment period on the Draft Environmental Impact Statement closed December 28, 2006. The final Environmental Impact Statement is expected to be issued in the first half of 2007. The IID pipeline is scheduled to go into service in mid 2009, and it will go through the permitting process at the same time as the North Baja Expansion. What is the company’s safety record? Gas Transmission Northwest, operator of North Baja and an indirect subsidiary of TransCanada Corp., has a long history of pipeline safety. It built the initial U.S. portion of the North Baja pipeline and has a 45-year history of safe pipeline operation on its dual 612-mile northwest interstate mainline pipeline in Oregon, Washington, and Idaho. There has never been a significant pipeline accident (when a pipeline ruptures or fails in a catastrophic manner) on either the GTN or the North Baja systems.Safety is one of the company’s top priorities. North Baja meets or exceeds all federal standards for design, construction, operations, maintenance, inspections, operator training, integrity, and first responder training and landowner communication. Because third-party damage is the greatest cause of incidents on all underground facilities, the company actively participates in One-Call ("call before you dig") programs in each of the states where the company operates. Is there local support for this project? The following entities have issued either letters or resolutions of support for the project:The City Councils of Calexico, Imperial, Holtville, Brawley, Yuma and Blythe; the Chambers of Commerce of El Centro, Calexico, Holtville, Brawley and Blythe; the Board of Supervisors of Yuma County, the Greater Yuma Economic Development Commission, the Imperial County Board of Realtors, the Winterhaven and Ehrenberg Volunteer Fire Departments, and the Blythe Search, Rescue & Assist. Would the IID Lateral require acquisition of new rights-of-way on private lands? Yes. However, only about a third of the route traverses private lands, mostly in the Imperial Valley. In the Valley, North Baja's preferred option is to put the line in public road rights-of-way, which would require an agreement with Imperial County . This option would further reduce the impact of the project on private lands and agricultural uses.How would the project cross the Imperial Dunes? Would this affect recreational use? North Baja is proposing a route through the dunes within the All American Canal / Interstate 8 corridor, and is also coordinating with IID regarding its All American Canal lining project, which may influence the route. North Baja will work with BLM and dune recreational user groups to identify recreational use issues and how they might be addressed. This is one of numerous issues that will be analyzed in the Environmental Impact Statement/Report for the project, and for which North Baja and the agencies will seek feedback from the public. |
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