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Enova, Pacific Enterprises Get Mexican Gas Contract

Energy: Group is first from the private sector to receive license for Chihuahua region.

March 20, 1997|From Bloomberg News

Enova Corp and Pacific Enterprises said Wednesday that they were awarded a license to build and operate a natural gas system in the Chihuahua region of Mexico. Distribuidora de Gas Natural, a group including the two California companies, is the first private-sector firm to get a license from the Mexican Energy Regulatory Commission to operate in the region, the firms said.

Members of the group include San Diego-based Enova subsidiary Enova International; Los Angeles-based Pacific Enterprises subsidiary Pacific Enterprises International; and Proxima Gas, a Mexican investment and development company. Enova and Pacific Enterprises said they expect to invest about $50 million in the project and serve at least 50,000 customers during the first five years of operations. Chihuahua is a city of about 630,000 in northern Mexico.

In August, the group was awarded a license by the Mexican commission to build and operate a natural gas infrastructure system in Mexicali in Baja California.Shares of Enova closed unchanged at $22. Shares of Pacific Enterprises fell 25 cents to close at $30.50. Both trade on the New York Stock Exchange.Enova's $4.3-billion bid to acquire Pacific Enterprises and create the nation's largest gas and electric utility is awaiting regulatory approval.

For the Record
Los Angeles Times Wednesday March 26, 1997 Home Edition Business Part D Page 3 Financial Desk 1 inches; 30 words Type of Material: Correction
Pacific Enterprises-Enova--The pending merger of Enova Corp. and Pacific Enterprises is a "merger of equals," according to both companies. A Briefly item last Thursday incorrectly described the combination.

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