High Mexican gas prices are evidence of changes needed

Nov 21, 2001 01:00 AM

High current natural gas prices in Mexico are evidence of the urgency to increase the nation's pipeline infrastructure, poor communication between different levels of government, and the informality of ownership of land that pipelines would pass through and delay the completion of such projects, said companies interested in taking part in pipeline construction projects.

These problems increase the cost of projects, and even put the completion of started projects in danger. Projects to build the Mier-Monterrey and Palmillas-Toluca pipelines, which would supply gas to hundreds of companies, were authorized by the government years ago, but remain inactive because of investment uncertainty caused by poor coordination between government departments.
Problems also exist with land owners who refuse to comply with earlier agreed sales of their land, often trying to increase the price of their land after the fact, said Gaz de France Vice President Alfonso Avalos.

Source: Reforma/Corporate Mexico
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