U.S.-Mexico Venture Delivers Gas in Mexicali

A U.S.-Mexican partnership has become the first private company to distribute natural gas in Mexicali, Mexico, under a privatization program aimed at boosting the country’s industrial sector. Analysts said opening of the venture in Baja California marks the first dent in Mexico’s traditional state monopoly control of every aspect of its energy industry. “This is the start of a new era,” said David Lozano, director general of Proxima Gas, the Mexican partner in the venture known as Distribuidora de Gas Natural de Mexicali (DGN), which includes U.S. partners San Diego-based Enova Corp. and Los Angeles-based Pacific Enterprises. Enova and Pacific Enterprises are awaiting regulatory approval for a planned merger. DGN said it will invest $25 million in the Mexicali project over the first five years of the 30-year license.