Natural gas deliveries from the U.S. to Mexico are increasing.
More than 13 bcf of U.S. gas has been delivered on the largest gas transmission interconnection between the U.S. and Mexico since its Aug. 1 start up. The interconnect was dedicated Nov. 13 (OGJ, Nov. 16, Newsletter) near McAllen, Tex., where it ties into the Penitas compressor station on Valero Natural Gas Partners L.P.'s 24 in. gas line.
Valero operates the 24 in., 3.5 mile interconnect to a 42 in. Mexican system operated by state Petroleum company Petroleos Mexicanos. The link makes available 400 MMcfd of capacity to supply growing Mexican demand for U.S. gas.
INSTALLATION
Negotiations between Valero and Pemex subsidiary P.M.I. Commercio Internacional to build the interconnect began in 1989. All necessary approvals were received earlier this year, and construction started in April.
It was completed July 10 at a cost of $4 million.
Valero directionally drilled a crossing under the Rio Grande from a point near McAllen to a point near Reynosa in the Mexican state of Tamaulipas. A tunnel was drilled approximately 25 ft below the river and the pipeline was pulled from the Mexican side to the U.S. side. Primary contractor on the job was Tennessee Pipeline Construction, Sinton, Tex.
Shippers on the U.S. Mexico interconnect have included Amoco Corp., Anadarko Petroleum Corp., Chevron Corp., Conoco Inc., Mobil Corp., Oryx Energy Co., and Texaco Inc.
Pemex estimates that U.S. gas exports to Mexico could rise to as much as 900 MMcfd by 1997. In 1991, more than 25 U.S. companies exported a combined 61.7 bcf of gas to Mexico, compared with 15.7 bcf in 1990, Pemex said.
Valero's relationship with Pemex dates from the 1960s, when the company began supplying natural gas to border areas.
In 1984, the company began supplying gas to Pemex facilities through a small interconnect near Eagle Pass, Tex.
Since then, the company has sold more than 45 bcf to Mexico, becoming in 1989 90 the largest exporter of gas to Pemex.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
