Mexico's state owned oil company Petroleos
Mexicanos,known as Pemex,said earlier this month that there are plans
to spend around $12 billion on upgrading its pipeline network.
Chief Executive,Juan Jose Suarez Coppel,said,"The transportation of
hydrocarbons and their derivatives via pipelines continues to be the most
efficient and safest option."
Suarez,formerly Chief Financial Officer of
the state concern,was appointed Chief Executive in September. He criticized the
oil giant's failure to modernize in recent years. The new Mexico investment plan involves $5.5 billion to
build an additional 2,800 miles (4,500km) of pipelines,four storage terminals
and 14 pumping stations,by 2015. Mexican pipelines carry crude oil,gas,
refined products and petrochemicals.
Another $5.6 billion will be used
over 10 years for maintenance of 29,200 miles (47,000km) of existing pipelines
that have an average age of 25 years. The integration of automated pipeline
systems among the oil company's four operating divisions is planned for
completion in 2012. Suarez added this Mexico investment would cost another $1
The pipeline upgrade investment,he said,is part of a broader
program to take advantage of last year's energy reforms that will help Pemex
take steps to catch up with world-leading oil firms.