Westcoast Energy Reaches Milestone in Mexico
|Monday, January 21, 2002
Westcoast Energy announced has reached a major milestone in the development of the Campeche Natural Gas Compression Services Project in Mexico. The Campeche project has commenced operation and, since October 2001 has been delivering 250 million cubic feet per day of high pressure natural gas from fields in the Gulf of Campeche to Pemex Exploracion y Produccion (PEP), a subsidiary of Petroleos Mexicanos (PEMEX). The US$310 million Campeche natural gas compression project, in which Westcoast has a 50% interest and serves as operator, has a five year take or pay contract with PEP to provide 250 MMcfd offshore natural gas compression and liquids recovery services from a platform located in the Bay of Campeche, in the Gulf of Mexico. The co-owner with 50% interest is Marubeni Corporation of Japan. "We have reached a major milestone in the development of this project," said Mike Stewart, President of Westcoast Energy International Inc. "We have been able to provide a service to PEMEX by building this platform to recover this natural gas so that it can be shipped to shore whereas before it had been flared. This is a win for Westcoast and Marubeni, a win for Mexico and a win for the environment." "This is the only privately owned and operated platform in the offshore production zone of Mexico; the cooperation with PEP and PEMEX has been superb in developing this new business relationship where we own and operate the project," concluded Mr. Stewart.