Tidelands to Build Natural Gas Storage Facilities For PEMEX
Tidelands Oil & Gas
|Tuesday, December 23, 2003
Tidelands Oil & Gas Corporation has executed a Memorandum of Understanding with Petroleos Mexicanos y Sus Organismos Subsidiarios (PEMEX), Mexico's state-owned petroleum company, to design, build and operate for PEMEX an underground natural gas storage facility and related surface equipment near Reynosa, Tamaulipas, Mexico. At present, Mexico is exploring the possibilities of developing with private investors, as authorized by law, storage facilities for natural gas other than its main pipeline grid. The construction of these underground facilities will allow Mexico to improve its delivery of energy related products to its industrial and residential customers.
President and CEO of Tidelands Oil & Gas Corporation, Michael Ward stated, "Our Company is honored to have the opportunity to work with PEMEX and Mexico, and to assist in projects designed to improve the delivery of energy related products to our neighbors in Mexico. This Memorandum of Understanding represents our aspiration to participate in enterprises that will have a positive impact on our Company as well as the customers and areas we serve. It also reflects our focus upon enhancement of the Company's fundamentals and shareholder value, while providing a platform from which to grow. We are enthused by our ability to develop close working relationships with PEMEX and Mexico, and look forward to additional projects that will further increase the validity of Tidelands' business model."
Lic. Reynaldo Jauregui Zentella, Subdirector de Alianzas y Nuevos Negocios, with the Direccion Corporativa de Planeacion Estrategica for PEMEX remarked, "We assigned a high priority to this project, since PEMEX is developing storage facilities in the southeast of Mexico that will allow us to balance our natural gas pipeline systems from the southeast to Mexico City. Still pending is a strategic facility, that will not only allow PEMEX E&P more flexibility in its production plans in the Burgos basin, but eventually support the northeast natural gas pipeline system."
Additional projects that have recently been announced by Tidelands include its "Reef International L.L.C." natural gas pipeline crossing at Eagle Pass, Texas and Piedras Negras, Mexico, which officially opened on November 1, 2003. This project was developed in partnership with Impact Energy Services, LLC and is currently supplying the natural gas demand for the local natural gas distribution utility in Piedras Negras, Coahuila. Significant future expansion in volumes transported through this pipeline is anticipated.