Tidelands Oil & Gas Corp. said Wednesday that its subsidiary, Reef International LLC, has commenced construction on its International Pipeline Project between Texas and Mexico. The Eagle Pass/Piedras Negras International Pipeline will cross between Eagle Pass, TX and the state of Coahuila, Mexico.

The 12-inch natural gas pipeline will be used to deliver natural gas produced in Maverick County, TX and redelivered to a utility in Coahuila. The 6-inch natural gas liquids pipeline, including loading and unloading facilities, will transport a butane/propane mixture into Mexico.

Tidelands Oil & Gas Corp. said it has formed a partnership with Impact Energy Services LLC for the purpose of constructing and operating the new international pipeline crossing.

The company noted that construction bids were awarded to R&R Contractors/Pickett Measurement of Corpus Christi, TX for the first phase of construction, which includes all measurement skids, pig stations and odorization stations for the pipeline. The project is expected to be completed as early as September 2003.

In May 2002, Reef International LLC began the permitting process to obtain state, federal and international permits (see Daily GPI, Oct. 4, 2001; May 3). In late May 2002, Reef International received a presidential permit to construct a five-mile pipeline to initially transport 5 MMcf/d of gas from Eagle Pass to Coahuila. The 12-inch diameter pipeline could be expanded to ship 15 MMcf/d later (see Daily GPI, May 31, 2002).

Tulsa-based Impact Energy Services LLC and its partner, Oklahoma City-based The GHK Co., are fully integrated natural gas companies involved in the exploration, production, gathering, treating, processing and marketing of natural gas.

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