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Article: ENERGY SECRETARIAT GRANTS ARIZONA COMPANY PERMISSION TO BUILD OIL PIPELINE THROUGH MEXICAN TERRITORY.
- Article from:
- SourceMex Economic News & Analysis on Mexico
- Article date:
- December 7, 2005
CopyrightCOPYRIGHT 2005 Latin American Data Base/Latin American Institute. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The Secretaria de Energia (SENER) has granted permission to US-based Arizona Clean Fuels (ACF) to construct and own a pipeline on Mexican territory to carry crude oil from a port terminal in Sonora or Baja California to the planned Wellton refinery near Yuma, Arizona.
The decision could raise some constitutional questions because foreign entities are not allowed to participate directly in Mexico's oil-industry operations. But ACF officials say the company and SENER negotiated an agreement in such a way that the project would not violate the Mexican Constitution.
Under the accord, ACF would purchase heavy crude oil in southern Mexico and transport it in ...