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Coral and Pemex Team Up on Border Crossing Pipeline

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.

Alex Steis

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