Mexico’s energy regulatory commission (CRE) created thePuebla-Tlaxcala geographic zone for gas distribution. The zonecovers 51 municipalities in the two states. An investment of about$50 million is expected to develop the project, and Gaz de Francehas expressed an interest.

In 1995, the zone’s population was 2.4 million with 430,000households, 70% of them equipped with running water and LPGinstallations. By 2010 population is expected to grow to 2.5million. A 1994 census determined there were 12,400 manufacturingand 43,600 commercial establishments in the region. Industrial fuelconsumption averages 55 MMcf/d of gas and 37 MMcf/de of fuel oil.There are 75 industrial facilities currently supplied with naturalgas in the zone.

The National Pipe line System offers two supply options to themunicipalities, a 30-inch pipe originating in Cosoleacaque andarriving at Venta de Carpio, and a 48-inch pipe running fromCampoala to Santa Ana, both of which are part of the TlaxcalaSector. Currently, Pemex-Gas y Petroquimica Basica supplies gas toindustrial customers by means of two pipelines originating inPuebla and arriving at Tetla and Tlaxcala. In addition, the CRE inJuly 1998 issued a permit for construction of a 12-inch line fromPuebla to Morelos.

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