El Paso Pipeline Partners, LP
While natural gas usage in the United States has been a tear during the past few years, that growth is a drop in the bucket when compared to our neighbors to the south. Since 2008, Mexican imports of U.S. gas have improved north of 90%, reaching a total of 767 billion cubic feet last year. What’s more, they’re poised to grow even further.
Benefiting from this could be El Paso Pipeline Partners, LP (EPB).
While the pipeline firm owns a plethora of natural gas focused assets, the firm’s newly commissioned Sierrita Lateral Line expansion could be a huge money maker long term. The project will send approximately 200 million cubic feet per day over the U.S.-Mexico border to newly built electric utilities in the South American nation. The company also has begun “open season” process for capacity upgrades on its 30-inch Mier-Monterrey Pipeline, which also sends natural gas across the border.
It’s not the only pipeline play into the nation, but with a 6% dividend and Kinder Morgan Inc.’s (KMI) backing, it’s one of the best.