Mexico issues permit for gas pipelines

Mar 29, 2002 01:00 AM

The Mexican government issued permits for the construction and operation of gas pipelines estimated by the Energy Secretariat to be worth approximately $ 2.322 bn, according to a report released. The energy regulating commission (CRE) issued 105 permits for the construction and operation of the pipelines, of which 84 are for transport, with an estimated value of $ 1.306 bn, and 21 are for distribution, worth approximately $ 1.016 bn.

Officials hope that government and private investments in the project will result in a total of 39,708 km (24,673 miles) of gas pipelines in 24 Mexican states. The Energy Secretariat detailed in a press release that 11,666 km (7,249 miles) of the pipeline will be used to transport the fuel and 28,042 km (17,425 miles) to distribute it.
According to the government, the object is to promote the use of natural gas and benefit from its advantages over other fuels, for example its energy efficiency, limited impact on the environment and competitive costs. Businesses can benefit from natural gas's ability to generate heat "which will allow them to obtain better results in their industrial processes and at the same time comply with current environmental regulations," the statement noted.

The Energy Secretariat explained that the public service permits included the construction and/or control of nearly 11,000 km (6,835 miles) of open-access pipeline capable of transporting 7.821 bn cfpd of gas. It added that the private use permits were for the construction of 668 km (415 miles) of pipeline capable of transporting 2.981 bn cf of gas.

Source: EFE
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