A winning bid for a natural gas distribution network in the strongly industrial Mexican state of Tamaulipas is to provide Houston Industries Incorporated (HI) with the foothold it needs in Mexico to seek acquisition of larger gas distribution systems, plus launch development of gas-fired cogeneration projects for industrial and manufacturing facilities.

The project, a 30-year concession to build, operate and maintain a distribution system in a Gulf Coast area with a population of nearly one million, is the first for HI in Mexico, but several others are on the company’s radar screen, said Christopher Glaeser, HI director of business development.

The company is currently preparing a bid on an international solicitation issued by the Mexican government for a gas distribution concession in Mexico City, an area with a population of nearly 20 million, said Glaeser. HI’s bid will be submitted next quarter and will be seeking to obtain one of the two concessions offered in or around Mexico City, he said. Each concession will win an area with about half the population of the city.

Meanwhile, the concession in the state of Tamaulipas “offers a lot of promise,” said Glaeser. Estimated distribution volume in the years ahead will grow sharply. “Currently, it’s not much,” he said. But HI subsidiary NorAm Energy Corp. and 50-50 joint venture partner Corporacion Gutsa SA de CV will invest up to $18 million over the next five years to develop the distribution network, he said. NorAm and Gutsa will acquire the existing natural gas infrastructure in the region from Petroleos Mexicanos (PEMEX), then expand the distribution network.

Theo Mullen

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