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Pemex to Resume Natural Gas Service a Week After Mexico Blasts

By Patrick Harrington

Sept. 16 (Bloomberg) -- Petroleos Mexicanos, the state oil monopoly, will ``gradually'' resume natural gas service tomorrow, a week after guerrilla attacks on pipelines cut fuel supply to thousands of businesses across central Mexico.

Pemex, as the Mexico City-based company is known, said technicians had begun filling the 48-inch duct known as Cactus- San Fernando with natural gas after they installed ``alternative infrastructure'' in damaged areas.

``That will allow natural-gas service to be regularized, in a gradual way, to all industrial and domestic clients beginning on Monday,'' the company said.

Reestablished service will allow as many as 2,500 companies in 11 states to resume full production. The companies, which include Volkswagen AG, Europe's largest automaker, have been losing an estimated $100 million a day, Mexico's National Manufacturing Industry Chamber said on Sept. 11.

Guerrillas from the Popular Revolutionary Army, or EPR, took responsibility for blowing up three Pemex oil and gas pipelines in the energy hub of Veracruz state Sept. 10. It was the third EPR strike against Pemex's distribution network since July.

To contact the reporter on this story: Patrick Harrington in Mexico City at pharrington8@bloomberg.net

Last Updated: September 16, 2007 19:24 EDT

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