Coral and Pemex Team Up on Border Crossing Pipeline
Coral Energy and Mexico-based Petroleos Mexicanos (Pemex) completed
their 104-mile pipeline linking the Pemex pipeline system at Arguelles
in the Mexico state of Tamaulipas with Coral's pipeline system on the King
Ranch in South Texas.
The $50 million pipeline project, which received Federal Energy Regulatory
Commission approval in November 1999, is designed for bi-directional flow
over the border (see NGI, Nov. 2, 1999).
Construction began in April.
"This new pipeline provides Coral and Pemex the flexibility to
adapt to changing natural gas demand and production profiles in the border
region," said Debbie Werner, Coral president North American Trading.
"We believe it's increasingly important to view this as one market,
with transportation systems spanning the border."
Coral, which built the entire pipeline, will own and operate the 102.5-mile
stretch in the U.S., while Pemex will own and operate the remaining 1.5
miles in Mexico's. The 24-inch diameter line which crosses the border over
the Rio Grande River near McAllen, TX, has a capacity of 300 MMcf/d. Coral
reports that gas began flowing into Mexico earlier this month.
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