Coral Building Mexico Pipeline
Coral Energy's Coral de Mexico LLC plans to build a 104-mile,
24-inch gas pipeline from the King Ranch in South Texas, crossing
the Rio Grande River near McAllen, TX, and running south into
Mexico in the direction of Arguelles. The FERC approved a border
crossing and presidential permit for the project last week.
The bidirectional pipe will have capacity of 300 MMcf/d. Coral
de Mexico is the sole owner of the U.S. portion, while Mexico's
Pemex owns and will operate the portion in Mexico. The project is
estimated to cost $40 to $50 million, and construction is planned
to begin in early 2000. Construction bids have yet to be awarded.
"There's an infrastructure on our side of the border and there's
an infrastructure on that side of the border, and we see value in
linking those infrastructures," said Coral spokesman Jimmy Fox.
Coral also will build a two-mile lateral to connect to the Pemex
system. Pemex will own the lateral.
"We have been in discussion with Pemex for a number of years and
in 1998 began in earnest to negotiate this project and signed the
agreement in early 1999," Fox said.
Mexico's tariff on natural gas imports was lifted earlier this
Joe Fisher, Houston
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