After beginning construction in May of this year, Tidelands Oil & Gas Corp. said Wednesday that its Reef International LLC pipeline crossing into Mexico is expected to begin gas flow on Nov. 1 (see Daily GPI, May 22). The 12-inch diameter pipeline, which initially will transport about 5 MMcf/d of gas from Eagle Pass, TX, to the state of Coahuila, Mexico, could be expanded later to ship 15 MMcf/d (see Daily GPI, May 31, 2002).

Reef International said it has already executed a gas supply agreement with a U.S. supplier and expects to receive the hot taps this week to interconnect its pipeline to the gas supply line owned by the U.S. supplier. In addition, it is scheduled to receive natural gas metering facilities onsite this week and hopes to complete the project by the second week in October.

In May 2002, Reef began the permitting process and in late May received a presidential permit to build the five-mile pipeline (see Daily GPI, Oct. 4, 2001; May 3, 2002). The pipeline will be used to deliver natural gas produced in Maverick County, TX, and redelivered to a utility in Coahuila. In addition, a 6-inch natural gas liquids pipeline, including loading and unloading facilities, will transport a butane/propane mixture into Mexico.

This project is a joint venture between Tidelands Oil & Gas and Impact Energy Services/GHK Co. of Oklahoma. Impact Energy Services/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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