Open access on Mexican gas lines imminent

Aug. 26, 1996
Mexico will allow third parties open access to transport natural gas through its 9,751 km pipeline system in a four-step process that begins Sept. 1. The first phase will allow third parties unrestricted access to the pipeline systems located in Naco-Hermosillo, Cuidad Juarez, and Piedras Negras, all in northern Mexico, the Energy Secretariat said. One analyst said this allows U.S. natural gas transmission, distribution, and marketing companies important access to northern Mexico, where the

Mexico will allow third parties open access to transport natural gas through its 9,751 km pipeline system in a four-step process that begins Sept. 1.

The first phase will allow third parties unrestricted access to the pipeline systems located in Naco-Hermosillo, Cuidad Juarez, and Piedras Negras, all in northern Mexico, the Energy Secretariat said.

One analyst said this allows U.S. natural gas transmission, distribution, and marketing companies important access to northern Mexico, where the state-owned oil company Petroleos Mexicanos (Pemex) cannot meet demand.

Pemex will use this first step to analyze how the program should be implemented in other regions, the Energy Secretariat said.

In January, representing the start of the program's second phase, companies that import at least 142,000 cu m/day (4.97 MMcfd) of natural gas will have access to pipelines in the key northern cities of Monterrey, Reynosa, Chihuahua and Torreon.

Phase three, scheduled for June 1997, limits access to users that consume 142,000 cu m/day or more of natural gas in the following key urban and industrial areas: Valley of Mexico (which includes Mexico City), Guadalajara, Veracruz, Salamanca, Cardenas, Minatitlan, Tlaxcala, Venta de Carpio, Madero, and Mendoza.

Mexico's final phase, beginning Nov. 8, 1997, provides "open access to all users" of Pemex's Gas & Basic Petrochemicals' (PGBP) pipeline network for both imported and domestic gas supplies.

Mexico disclosed the regulations in the Aug. 7 Diario Oficial, the country's federal register.

Mexico in recent months has accelerated efforts to privatize its natural gas industry, and open access is a key element of this push. Earlier this month, Mexico awarded its first gas privatization license, and Pemex let contract to U.S. and Canadian companies to manage automation of PGBP's gas and LPG pipeline grids (OGJ, Aug. 19, Newsletter).

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