El Paso Natural Gas

El Paso Natural Gas. It is a major interstate natural gas pipeline system that has played a foundational role in the energy development of the Southwestern United States. Originally developed to transport gas from the prolific fields of West Texas and New Mexico, its network became a critical supply link for growing markets in California, Arizona, and Nevada. The company has undergone significant corporate transformations, ultimately becoming a key subsidiary of the pipeline giant Kinder Morgan, Inc..

History

The company's origins trace back to 1928 when entrepreneur Paul Kayser founded the **El Paso Natural Gas Company**. Its initial pipeline, completed in 1929, connected the Permian Basin to El Paso, Texas. A transformative expansion occurred in 1951 with the completion of a 1,400-mile line from the San Juan Basin to the California border, a project spearheaded by Kayser and instrumental in fueling the post-war economic boom in the Southwest. The company was acquired by the Burlington Northern Railroad in 1983 but was later spun off. In a landmark move, El Paso Corporation was formed in 1992 through the merger of the pipeline company with the oil and gas explorer Burlington Resources. Following the bankruptcy of El Paso Corporation's parent in the early 2000s, its pipeline assets were restructured and were ultimately purchased by Kinder Morgan, Inc. in 2012 for approximately $21 billion, one of the largest pipeline acquisitions in history.

Operations

The extensive pipeline system spans over 10,000 miles across the southwestern United States, with major arteries originating in the gas-producing regions of the Permian Basin, the San Juan Basin, and the Anadarko Basin. Key infrastructure includes compressor stations, storage facilities, and interconnections with other major systems like the Transwestern Pipeline and the Northwest Pipeline. Its primary delivery points serve utilities and power generators in major metropolitan areas such as Los Angeles, Phoenix, and Las Vegas. The system also includes significant cross-border capacity into Mexico, supporting power generation in states like Chihuahua and Sonora.

Environmental and regulatory issues

As a major pipeline operator, the company has been subject to extensive oversight by the Federal Energy Regulatory Commission (FERC) and the Pipeline and Hazardous Materials Safety Administration (PHMSA). Its expansion projects, particularly those aimed at increasing export capacity to Mexico, have frequently involved proceedings under the National Environmental Policy Act (NEPA). The company has faced scrutiny and legal challenges from environmental groups, such as the Sierra Club and WildEarth Guardians, concerning air emissions from compressor stations and the climate impacts of fossil fuel infrastructure. Compliance with the Clean Air Act and the Clean Water Act has been a continual operational focus, especially for facilities located near sensitive areas like the Mojave Desert.

Corporate structure and ownership

Following its acquisition, the pipeline assets operate as a wholly-owned subsidiary of Kinder Morgan, Inc., the largest energy infrastructure company in North America. It is managed within Kinder Morgan's Natural Gas Pipelines business segment, which also includes systems like the Tennessee Gas Pipeline and the Colorado Interstate Gas Company. The legal and regulatory affairs of the pipeline are handled by a dedicated team based in Houston, while field operations are managed through regional offices in El Paso and Phoenix. Its tariffs and interstate service are regulated by the Federal Energy Regulatory Commission.

Major incidents and controversies

A catastrophic pipeline rupture and subsequent explosion occurred near Carlsbad, New Mexico, in August 2000, resulting in twelve fatalities and highlighting systemic issues with internal pipeline corrosion. This disaster led to a major investigation by the National Transportation Safety Board (NTSB) and significant penalties from the Department of Transportation. In the early 2000s, the company was embroiled in the broader California electricity crisis, facing allegations of colluding with Enron to manipulate gas supplies and prices, which resulted in settlements with the Federal Energy Regulatory Commission. More recently, a 2022 rupture on its system near Coolidge, Arizona, forced evacuations and reignited public debate over pipeline safety and the aging infrastructure of the national pipeline network.

Category:Natural gas pipelines in the United States Category:Companies based in Houston Category:Kinder Morgan