San Juan County Industrial Park to receive 13-mile natural gas pipeline extension

Construction of a 13-mile extension to a natural gas pipeline through the San Juan County Industrial Park could further the area’s efforts in attracting business and job creation.

Tim Korte, a New Mexico Gas Co. spokesperson, said the utility began construction on the $6.1 million project this month and estimates it will last through December.

“Natural gas is reliable and affordable, which are key elements in economic development,” NMGC President Ryan Shell said in a statement.

San Juan County acquired over 190 acres of land near La Plata, north of Farmington, in 2007, which would become the Industrial Park, said County Manager Mike Stark. From 2010 to 2020, part of the land was leased to Process Equipment and Service Company Inc., or PESCO. Back then, he said the company, an equipment manufacturer for the oil and gas industry, decided not to renew the lease due to economic conditions and infrastructure gaps, like access to natural gas and fiber, in the area.

Since 2020, Stark said his team sought a federal economic development assistance grant to improve the property by including fiber extensions and, now, through the Economic Development Department, access to natural gas rather than propane. As a result of the upgrades, he said PESCO has re-leased 45 acres as of Sept. 1 and will introduce 84 new jobs to the economy. Other companies located in the Industrial Park include energy infrastructure company Kinder Morgan and the San Juan County backlot, a studio property, Stark said.

“This represents a very important initiative for us in terms of building out our economy and trying to maintain as many of those economic-based jobs that we can here,” Stark said.

The project’s primary focus, Korte said, is to provide natural gas services to an estimated additional 160 customers. That way, companies, small businesses and residents looking to locate along the pipeline route, or who are already located there, will have the power option once installation is complete.

The EDD is funding $4.1 million for the construction, San Juan County will aid with around $225,000 and NMGC will pay the remainder, Korte said.

“All over the state, natural gas drives industry (and) supports jobs,” Korte said. “There’s demand for natural gas in that area of San Juan County and in other areas statewide, whether it’s for residential, small commercial or industrial use, and the reason is because gas is more affordable than other energy sources.”

The construction comes as New Mexico Gas Co.’s owner, Emera, is asking regulators to approve a $1.25 billion sale of the utility to Louisiana-based private equity firm Bernhard Capital Partners.