Mexico to Eliminate Tariffs on U.S. & Canadian Natural-Gas Imports by July

SourceMex Economic News & Analysis on Mexico, May 26, 1999 | Go to article overview

Mexico to Eliminate Tariffs on U.S. & Canadian Natural-Gas Imports by July


The Mexican government has announced plans to eliminate a tariff on imports of US and Canadian natural gas earlier than scheduled to compensate for a potential energy shortage in northern areas of the country. The 4% tariff will be scrapped July 1. If Mexico had followed the timetable spelled out under the North American Free Trade Agreement (NAFTA), the tariff would have remained in place until 2003. The government had planned to eliminate the tariff at the end of 1999, but moved up the date to the middle of the year to boost supplies of natural gas in the rapidly growing industrial areas of northern Mexico. "Eliminating the tariff will improve the quality of energy available both to the industrial sector and to the public at large," Energy Secretary Luis Tellez Kuenzler said at a business and energy conference in Monterrey. As part of the plan to scrap the import tariff, President Ernesto Zedillo's administration is scheduled to release, for the first time ever, regulations spelling out a price structure for transporting natural gas and for access to pipelines owned by the state-run oil company PEMEX. The lack of specific regulations was as much a hindrance to new investments in the natural-gas sector as the import tariff. "This is very good news that will surely spark new cooperative projects along the US-Mexico border," said Hector Olea, director of the Comision Reguladora de Energia (CRE). Opening the natural-gas market will allow US companies like KN Energy and Sempra Energy to proceed with projects that had been suspended. KN Energy had placed on hold the construction of a 92-mile gas pipeline connecting Roma, Texas, with Monterrey because of the high tariffs and lack of regulations. KN inherited the project after acquiring Texas- based MidCon Corp. in October 1996. "Lifting these tariffs greatly improves the economic feasibility of our projects and in turn opens the door wider to greater opportunities," said KN Energy's business development analyst Delia Gallardo-Barnett. Sempra Energy recently won a concession to construct and operate a US$40 million natural-gas distribution system in Durango and Coahuila states and should benefit from the elimination of the tariff. Sempra will rely on natural gas imported from the US to serve both its new Coahuila-Durango pipeline and an existing distribution system in Chihuahua state. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Mexico to Eliminate Tariffs on U.S. & Canadian Natural-Gas Imports by July
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.