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Joint venture to supply nitrogen to Mexico

Eric Watkins
Senior Correspondent

LOS ANGELES, Dec. 28 -- Air Products said a joint venture company with its Grupo Infra partner will supply 90 MMscfd of nitrogen to Petroleos Mexicanos Exploracion y Produccion (PEP).

Nitrogen from the gas turbine and steam-driven facility is supplied for injection and enhanced oil and gas recovery from PEP's Jujo-Tecominoacan oil fields near Villahermosa in Tabasco, Mexico.

The nitrogen plant project, announced in 2006, began its supply of nitrogen during November as scheduled.

In 2006, state-owned Petroleos Mexicanos said it planned to invest 13 billion pesos during 2007-21 in Jujo-Tecominoacan oil field, its second-largest hydrocarbon reservoir in southern Mexico.

The investment is to include completing 11 development wells and repairing 34 wells as well as the construction of 6 km of oil-gas pipelines, 25 km of oil pipelines, and 15 km of gas pipelines.

The announcement concerning nitrogen injection coincides with a report issued by Mexico's ministry of energy detailing the country's oil outlook for 2006-16, as well as key recommendations for the development of Pemex (OGJ Online, Dec. 14, 2007).

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