Today began with one more operational cross-border natural gaspipeline in place than there was last month, as Coral Energy andMexico-based Petroleos Mexicanos (Pemex) announced yesterday thecompletion of their 104-mile pipeline linking the Pemex pipelinesystem at Arguelles in the Mexico state of Tamaulipas, with Coral’spipeline system on the King Ranch in South Texas.

The $50 million pipeline project, which received Federal EnergyRegulatory Commission approval in November of 1999, is designed forbi-directional flow over the border (see Daily GPI, Nov. 19, 1999). Construction began inApril.

“This new pipeline provides Coral and Pemex the flexibility toadapt to changing natural gas demand and production profiles in theborder region,” said Debbie Werner, Coral president North AmericanTrading. “We believe it’s increasingly important to view this asone market, with transportation systems spanning the border.”

Coral, which built the entire pipeline, will own and operate the102.5 mile stretch on U.S. soil, while Pemex will own and operatethe remaining 1.5 miles on Mexico’s side of the border.

The 24-inch diameter line which crosses the border over the RioGrande River near McAllen, TX, has a capacity of 300 MMcf/d. Coralreports that gas began flowing into Mexico earlier this month.

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