Mexico Promotes Natural Gas Competition

Fortnightly Magazine - January 15 1996
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The Government of Mexico on November 8 revealed its new natural gas regulations at a special conference of industry executives in Mexico City. The new rules promote use of natural gas; create a competitive, market-driven gas industry; encourage private investment; enhance customer choice; and protect the environment. Private-sector transmission, distribution, and storage of gas were all previously controlled by the state.

Conference attendee Thomas A. Page (em chairman of San Diego Gas & Electric Co. (SDG&E) and of Enova Corp., the utility's new holding company (em praised Mexican president Ernesto Zedillo for his continuing efforts to open the Mexican market to competition. Page noted that SDG&E, along with Pacific Enterprises International and Proxima S.A. de C.V., have formed a partnership to build and operate natural gas distribution networks in Mexico, especially Mexicali. If awarded the Mexicali project, the partnership plans to construct a pipeline network that serves industrial, commercial, and residential customers.

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