Tejas Energy, LLC announced plans to build a 75-mile pipeline totransport 90 MMcf/d of gas to the city of Toluca, Mexico, locatedabout 45 miles west of Mexico City. The pipeline will move gas froman interconnect with Pemex Gas y Petroquimica Basica’s pipeline atPalmillas, Mexico to a new local distribution company formed byRepsol, which placed a winning bid for the distribution zoneearlier this year.

Tejas Energy will own and operate the 16-inch diameter pipeline,which is expected to begin service in 1999. The Houston-basedcompany received a permit to construct the pipeline earlier thisyear from the Mexican Energy Regulatory Commission.

Tejas Energy, an affiliate of Shell Oil Co., was formed earlierthis year through the combination of Tejas Gas Corp. and ShellOil’s midstream natural gas business.

©Copyright 1998 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press,Inc.