The Associated Press reported from VeraCruz Mexico today, Monday, September 10, 2007 that leftist guerrillas took credit for a string of explosions that ripped apart at least six different Mexican oil and gas pipelines Monday, rattling financial markets and causing hundreds of millions of dollars in lost oil and gas production.
The six explosions were seen several miles away, and set off fires that sent flames and black smoke shooting high above the Gulf coast state of Veracruz. At least a dozen natural gas pipelines, mostly carrying natural gas, were affected, said Jesus Reyes Heroles, the head of Mexico's oil monopoly Petroleos Mexicanos, without providing specific information. The explosions occurred in valve stations where different pipelines intersect.
It was reported by Mexican officials of Pemex said there would be hundreds of millions of dollars in lost production and about nine states and the capital, Mexico City, would be affected. "It is a big blow," Reyes said. "You can't store natural gas or transport it by truck."
The six explosion blasts caused brief jitters in international markets, with natural gas futures up as much as 20.2 cents on news of the explosions, although prices dropped in later natural gas trading. One oil pipeline was hit in Monday's attack but Pemex said the damage wouldn't affect crude exports.
Mexico is a major oil producer and exporter, with oil and related taxes accounting for over a third of the Mexican federal government's revenue. The U.S. imported 12.7 million cubic feet of natural gas from Mexico in 2006, only about 0.3 percent of total imports that year.
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