Mexico

Mexico’s energy regulatory commission, the Comison Reguladora de Energia (CRE), intends to hold a public hearing in November to discuss measures to deal with gas price volatility, strong demand growth and future improvements in Mexican natural gas industry competition.

Mexico’s energy regulatory commission, the Comison Reguladora deEnergia (CRE), has called for a public hearing to discuss measuresfor advancing toward a “more efficient and competitive Mexicannatural gas industry.” The call for action follows an Aug. 1measure implemented by the CRE to alleviate the burden of therecent price volatility experienced by the gas industry.

Despite snow in Calgary and modest disruptions of Gulf of Mexicosupplies by Tropical Storm Helene, nearly all points softened a bitThursday, with most of the declines less than a dime. Californianumbers took the biggest hits of more than 20 cents, while tradersof Canadian gas at Aeco, Sumas and Stanfield saw flat to slightlyhigher pricing.

Less than two weeks after the deadly explosion on El PasoNatural Gas’ system in southeastern New Mexico, the pipeline lastweek had more than 700 MMcf/d of its 1.1 Bcf/d capacity restored toits South Mainline that services markets between Texas andCalifornia.

The first civil lawsuit was brought Tuesday against El PasoNatural Gas for the deadly explosion in southeastern New Mexico,accusing the pipeline of negligence in failing to “properlyinspect, maintain and operate” its system.

Increased natural gas development in the Gulf of Mexicocontinues at break-neck speed. Daulphin Island Gathering Partners(DIGP) recently completed two projects that will expand natural gasservice in the Gulf.

Except for the deep-water Gulf of Mexico, major producers haveessentially “thrown in the towel” in the U.S. oil and gas marketand are traipsing overseas to find their fortunes, a top executivewith The Coastal Corp. said yesterday. As a result, he believesmost of the burden to supply a 30 Tcf natural gas market will fallto the independent producers.

Blue Dolphin Energy has signed an agreement to build a gaspipeline in the Gulf of Mexico to transport 120 MMcf/d ofproduction for Vastar Resources. The new 3.4-mile, 12-inch diameterline will be designed to accommodate production from High IslandA-5 to Blue Dolphin’s Black Marlin Pipeline in High Island BlockA-6. Transportation service is expected to commence in 60 days.Blue Dolphin will own a 50% interest in the new pipeline at anestimated net cost of $1.1 million. It owns a 50% interest andoperates the Black Marlin Pipeline system, which currentlytransports 120 MMcf/d. Black Marlin has capacity to transport 200MMcf/d. Blue Dolphin Energy Company is engaged in the acquisitionand exploration of oil and gas properties, and the gathering andtransportation of natural gas and condensate.

Coastal Oil and Gas has announced it is selling its interests in36 offshore oil and gas holdings. The offshore leases are locatedin the Gulf of Mexico, in blocks ranging from offshore of Alabamato south of Texas. When asked about the reasons for selling theseleases, spokesperson Dorothy Beeler said it was just “ongoingportfolio asset management,” and that it had nothing to do withCoastal’s planned merger with El Paso Energy.