This renegotiated contract allows Tidelands to be paid on the transportation of gas only, which alleviates Tidelands’ requirement for a $1 million line of credit to secure the purchase and sale of gas. It also secures a long-term relationship with CONAGAS.
The company also has announced that it has selected a route to extend its existing pipeline at the Eagle Pass, Texas/Piedras Negras, Mexico border. The selected route will follow the Highway 57 corridor and extend 32km SW to the Carbon I and Carbon II electrical generation facilities. This extension will be a 20-in gas pipeline that is expected to deliver an additional 10,000 million Btu/d, with rapid expansion opportunities available. Construction of this pipeline is expected to take place in the fourth quarter of this year, and will take approximately one month to complete. This new high-pressure pipeline extension will enable Tidelands, through its associate, CONAGAS, to service existing and new customers with natural gas along the Highway 57 corridor. This will create a new industrial corridor by having natural gas readily available for industry.