NOVA Corp., Calgary, Alberta's major gas pipeline operator, is investigating business prospects in Mexico under the North American Free Trade Agreement.
NOVA Pres. Ted Newell said possibilities could include pipeline engineering or an equity ownership in pipelines or gas marketing services. He said Mexico has substantial untapped gas potential, but NOVA's studies are in a preliminary stage.
Newell views Mexico as one of the opportunities for strong growth of his company during the next decade.
NOVA has made several recent moves to expand beyond Alberta and become a player in the continental gas market. It recently bought a 36.5% interest in Natural Gas Clearinghouse, Houston, and has an agreement to take a 33.3% interest in the Altamont pipeline project. Altamont plans a gas pipeline from Alberta to Wyoming to connect with systems serving California.
Newell said NOVA will concentrate on improving efficiencies in core business areas: the Alberta gas transmission division, petrochemicals, and international gas services, including pipelines.
NOVA is also studying prospects in Latin America and Southeast Asia for pipeline engineering and other services. The company already holds an interest in Argentina's main gas pipeline, along with technical services and consulting operations in Malaysia, China, Pakistan, and Ukraine.
Copyright 1994 Oil & Gas Journal. All Rights Reserved.
