A Mexican pipeline subsidiary of Tejas Gas is squaring offagainst a pipeline company owned by Nova Corp. and NGC Corp. Bothfirms have competing gas pipeline projects designed to bring about90 MMcf/d of gas nearly 80 miles to the Toluca metropolitan area,50 miles west of Mexico City, from a point of origination inQueretaro, north of Mexico city.

Mexico’s Comision Reguladora de Energia (CRE) announced lastweek it has issued gas transportation permits to both Tejas Gas deMexico and Transnevado, the company owned by NGC and Nova. Thepipeline project with the best price and quality of service willwin the contract.

Annual gas consumption in the Toluca metro area currently isonly 20 MMcf but is expected to grow to 50 MMcf followingconstruction of a distribution system by Repsol Mexico. The $31million dollar Tejas Gas project would transport 96 MMcf/d of gas77 miles to Toluca. Transnevado’s $23 million system wouldtransport 82 MMcf/d 79 miles to the city. The two lines wouldsupply industrial areas on both ends of the system with domesticproduction.

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