Coral Energy’s Coral de Mexico LLC plans to build a 104-mile,24-inch gas pipeline from the King Ranch in South Texas, crossingthe Rio Grande River near McAllen, TX, and running south intoMexico in the direction of Arguelles. The FERC approved a bordercrossing and presidential permit for the project last week.

The bidirectional pipe will have capacity of 300 MMcf/d. Coralde Mexico is the sole owner of the U.S. portion, while Mexico’sPemex owns and will operate the portion in Mexico. The project isestimated to cost $40 to $50 million, and construction is plannedto begin in early 2000. Construction bids have yet to be awarded.

“There’s an infrastructure on our side of the border and there’san infrastructure on that side of the border, and we see value inlinking those infrastructures,” said Coral spokesman Jimmy Fox.Coral also will build a two-mile lateral to connect to the Pemexsystem. Pemex will own the lateral.

“We have been in discussion with Pemex for a number of years andin 1998 began in earnest to negotiate this project and signed theagreement in early 1999,” Fox said.

Mexico’s tariff on natural gas imports was lifted earlier thisyear.

Joe Fisher, Houston

©Copyright 1999 Intelligence Press, Inc. All rightsreserved. The preceding news report may not be republished orredistributed in whole or in part without prior written consent ofIntelligence Press, Inc.