Midcoast Energy announced that its Mexican pipeline affiliate,Midcoast del Bajio, which is jointly owned with Associated PipeLine Contractors, has been awarded a 10-year natural gastransportation contract to serve the General Motors de Mexico’sSilao Plant. It also has signed a deal to serve the FIPASIIndustrial Park, which includes facilities owned by American Axle,Weyerhaeuser Co. and Avintech. All the facilities are located inthe Bajio region of central Mexico near the city of Leon,Guanajuato, where Midcoast del Bajio is building a 59-mile, 16-inchdiameter pipeline.

The pipeline will run from an interconnection with a Pemex Gas yPetroquimica Basica (“Pemex”) pipeline near Valtierrilla to Leon.Substantially all of the right-of-way for the new pipeline has beenacquired and when completed, the system will provide gastransportation services to parts of central Mexico that do notcurrently have access to gas. This area includes numerous majorindustrial and residential areas in addition to the GM Silao plantand the FIPASI Industrial Park.

“This project marks our initial entry into the Mexican naturalgas pipeline market and a continuation of our grass roots projectefforts,” said Midcoast CEO Dan C. Tutcher. “We see tremendouspotential for growth in natural gas demand along this pipelinesystem and plan to aggressively pursue transportation agreementswith other major industrial customers in the area.”

Under the terms of the GM contract, Midcoast del Bajio willprovide 100% of the natural gas requirements to the Silao plant fora 10-year term beginning in spring 2001

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