Mexico oil and gas distribution system targeted by rebels

Published 12 July 2007

Hundreds of companies in Mexico shuttered operations temporarily yesterday after a shadowy rebel group bombs key petroleum pipelines

Hundreds of companies, including multinationals such as Honda and Hershey’s, shuttered operations temporarily yesterday after a shadowy rebel group claimed responsibility for a series of explosionsof key petroleum pipelines. Near-simultaneous blasts carried out just after 1 a.m. Tuesday in central Queretaro state cut off natural gas supplies to at least four states in central Mexico. The region was still reeling from a round of pipeline explosions July 5 in neighboring Guanajuato state. “There can’t be fewer than 800 or 1,000 medium and large companies affected,” Victor Manuel Lopez, secretary of the National Industrial Chamber, told the Notimex news service. He estimated daily losses of between $5 million and $10 million due to the suspension of gas service, without including the impact on small businesses.

Petroleos Mexicanos, or Pemex, the state-run oil company, sent 150 technicians to try to restore supplies in three pipelines affected Tuesday. In addition to a 36-inch natural gas pipeline, the blasts damaged smaller pipelines carrying liquid petroleum gas and crude oil.

A long-dormant rebel group