Monday, December 20, 2010

Mexico's oil pipeline explosion death toll rises to 27


Bloomberg, 12/20/2010

Mexican authorities blamed an explosion in an oil pipeline that killed 27 people on a criminal gang that was trying to steal fuel.

Yesterday’s blast at the 30-inch Nuevo Teapa pipeline operated by state-owned company Petroleos Mexicanos in San Martin Texmelucan, Puebla state, also injured 52 people, the company, known as Pemex, said in a statement on its website. The explosion damaged 115 houses, Pemex said.

The attempt to steal fuel from Pemex, which is often a victim of theft, is part of the broader wave of criminal activity afflicting Mexico, said David Shields, a Mexico City- based independent energy analyst and publisher of Energia magazine. The company said last year it had 5 million barrels worth 9.3 billion pesos ($750 million) stolen in 2008.

“It’s not an isolated incident,” Shields said in a telephone interview. “It’s part of the constant problem we’re living every day.”

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