Nuevo Leon Sets Sights on US$18mn Pipeline

Mexico's Nuevo Leon state government aims to build a US$18mn pipeline to provide industry with natural gas, Nuevo Leon's economic development secretary Alejandro Paez Aragon said in a state government press release.

The pipeline would stretch 114km from Los Ramones through Montemorelos and end in the city of Linares.

The government aims to foster business development in the area by providing an affordable and reliable natural gas supply.

Paez identified one foodstuff company in Montemorelos that has had to carry out its expansions in Mexico state's Toluca city because of a lack of gas.

The state government aims to finance the project with investment from its own purse, as well as funds from companies already located in the area, the pipeline operator and state oil company Pemex.

Pemex previously turned down the project, but Nuevo Leon's government hopes that the project will be viewed as viable now that the investment would be divided among several parties.

"We have been in Pemex, with various departments evaluating the project. We are in the stage where [state] governor Natividad Gonzalez Paras makes the formal petition to the CEO in order to make the formal approach," the statement quoted Paez as saying.

The pipeline would have a 7MBTU/d capacity and require 18 months to construct. Nuevo Leon's government could begin developing engineering studies until the matter of financing is settled, newspaper El Norte reported.

Visit BNamericas to access our real-time news reports, 10-year archive, Fact File company database, and latest research reports. Click here for a Free two week trial to our Latin America Oil & Gas information service.