Lone Star Gas International along with two partners was awardeda permit to build a gas distribution system in Mexico City byMexico’s Comision Reguladora de Energia (CRE). Lone Star is a 70%partner in a consortium that is to invest $213 million over 10years for a system that will have nearly 440,000 users, the vastmajority of them residential. Lone Star’s partners, each with 15%,are the Mexican companies Grupo Diavaz and Controladora Comercial eIndustrial.

The CRE also picked the winner of a bid for a permit todistribute gas in the Cuatitlan-Texcoco Valley. The winningconsortium is made up of Mexican construction company BufeteIndustrial Construcciones, Mexigas, and Gaz de FranceInternational. This group also was the lead bidder for the MexicoCity project. However, no single consortium was to be awarded bothfranchises, and the Mexigas group chose to develop a system in theCuatitlan-Texcoco Valley over Mexico City.

Only one other American company, Houston Industries, was amongconsortia bidding for the projects. Houston Industries wasdisqualified during the technical phase of bidding as it submittedrequested information in an unacceptable format, a spokeswomansaid.

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