Aug. 26 (Bloomberg) -- Petroleos Mexicanos, the state-owned oil company, may receive a permit to extend a pipeline into the U.S. next month after the U.S. State Department issued an environmental study on the project, the El Paso Times reported.

Other local and federal government agencies still need to issue permits for construction to begin on the cross-border gasoline pipeline, the El Paso, Texas-based newspaper said, citing State Department spokeswoman Elizabeth Orlando.

The pipeline would take six months to build and would extend 28 miles into El Paso County and 21 miles into Mexico, the newspaper reported. The pipeline would connect the Longhorns Partners Pipeline in Texas with a Pemex terminal in northern Mexico, the newspaper said.

A Pemex spokesman in Houston declined to comment about the State Department report, the newspaper said.

To contact the reporter on this story: Andres R. Martinez in Mexico City at amartinez28@bloomberg.net

Last Updated: August 26, 2008 19:47 EDT