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To: BigBull who wrote (45248)	5/21/1999 3:15:00 PM
From: BigBull	Read Replies (1) \| Respond to of 95453

FWIW - WFT buying bankrupt Dailey - biz.yahoo.com

To: BigBull who wrote (45248)	5/21/1999 3:18:00 PM
From: BigBull	Respond to of 95453

More on the Mexico Nat Gas story - Energy News Fri, 21 May 1999, 3:14pm EDT Mexico Eliminates Tariff on U.S., Canadian Natural Gas Imports Monterrey, Mexico, May 21 (Bloomberg) -- Mexico will eliminate a 4 percent tariff on natural gas imported from Canada and the U.S., in a move that is expected to spur the construction of pipelines to Mexico as more foreign gas is pumped south. Once the tariff is removed starting July 1, Mexican companies will have an incentive to buy imported natural gas that in the past more expensive than gas sold by Petroleos Mexicanos. The cutting of the tariff will also apply to gas shipments from Canada, said Luis Tellez, Mexico's energy minister. ''We're going to remove the tariff starting July 1,'' Tellez said. ''By this time we should already have the rules of access for Pemex natural gas pipelines and transportation systems in place.'' Mexico never cut the tariff or set the regulations that needed to allow competition to flourish after it allowed foreign companies to transport natural gas in Mexico starting in 1997. Because U.S. companies were uncertain of the price they would have to pay state-controlled Pemex to send natural gas to Mexico, no contracts were signed. The elimination of the tariff will have a ''profound effect'' on natural gas competition with Pemex, said George Baker, an energy consultant in Houston. ''We're going on two and a half year of having a free market but no freedom.'' The lack of regulations and the tariff stopped companies from signing contracts. For example, Midcon Corp. announced in October 1996 plans to build a 92-mile, 24-inch pipeline from the border town of Roma, Texas to Monterrey. The project by Midcon, which was later bought by another company, never got off the ground because of the tariff. Mexico has been moving to open the natural gas market to increase competition and fund the investment needed to build pipelines that are needed to expand use of natural gas, a cheaper and cleaner fuel than oil. In addition, many regions in Mexico are far from Pemex gas fields, such as along the U.S. border. Yesterday, Sempra Energy International broke ground in San Diego on a $35 million pipeline that will deliver natural gas across the border to Rosarito. The pipeline is the first step in making gas available for Tijuana and surrounding areas. The ''groundbreaking links the energy markets of the U.S. and Mexico in a whole new way,'' said Richard D. Farman, chairman and chief executive of Sempra Energy. ''We believe the energy infrastructure of the U.S. and Mexico will become increasingly interconnected over the next decade.'' -------------------------------------------------------------------------------- © Copyright 1999, Bloomberg L.P. All Rights Reserved.