Mexico gas line blasts force major factories to close
More than 60 per cent of Mexico's steel production was halted and two major auto plants, including Volkswagen's only manufacturing facility in North America, shut down after explosions claimed by a shadowy leftist group cut natural gas supplies.
By Agencies |
MEXICO: More than 60 per cent of Mexico's steel production was halted and two major auto plants, including Volkswagen's only manufacturing facility in North America, shut down after explosions claimed by a shadowy leftist group cut natural gas supplies.
State-owned Petroleos Mexicanos, or Pemex, said Tuesday the attacks on its oil and natural gas pipelines would cause the company hundreds of millions of dollars (euros) in production losses and affect 10 states.
Private-sector groups told Mexican news media the attacks and subsequent precautionary shutdowns would cost businesses close to $90 million (euro65 million).
“The effect on (energy) supplies to the industrial sector is considerable,'' Pemex said in a statement. It said the affected natural gas service wouldn't be restored until Sunday or Monday.
Fire still burned at one of the bombed pipelines, but work crews had already started to repair three other stretches of pipeline, the company said on Tuesday.
Mexico's steel industry chamber Canacero said Tuesday that more than 60 percent of the country's steel production has been halted, and that it could take up to seven days to resume. In a statement, Canacero said losses would “ignificantly'' exceed the $36 million (euro26 million) the industry suffered from similar attacks on pipelines in July.
Industry and national-security experts say the small leftist group claiming responsibility has proved it is a force to be reckoned with.
“The sophistication required to plan, coordinate and execute these explosions shows that the perpetrators have the technical capability of turning these episodes into either terrorist attacks or industrial sabotage,'' George Baker, a Houston-based energy analyst who follows Petroleos Mexicanos, or Pemex, wrote in a report.
The Revolutionary People's Army, or EPR, a secretive Marxist group that killed dozens of police and soldiers during attacks in the late 1990s, claimed responsibility for the explosions in a statement posted to a web site that has hosted similar communiques from the group in the past.
The group made similar statements in July, when it claimed responsibility for explosions along a pipeline between Mexico City and Guadalajara.
“But something has changed because now they have the capacity to attack pipelines,'' said Mexican national-security analyst Jorge Chabat. “They're acting outside their regular sphere of influence and that is a problem.''
Chabat said the group's ability to deal a strong blow to the economy is no small matter. “If they can attack Pemex pipelines, well then yes, you have to take them seriously.''
The gas shutdown forced Volkswagen AG to suspend production at its sprawling car factory outside the central city of Puebla, possibly until Monday.
Chrysler LLC's plant in Toluca, outside Mexico City, was also shut Tuesday and could be idled for up to five days, union officials said. Natural gas is used for heating purposes in industrial processes, such as in steel blast furnaces.
State-owned Petroleos Mexicanos, or Pemex, said Tuesday the attacks on its oil and natural gas pipelines would cause the company hundreds of millions of dollars (euros) in production losses and affect 10 states.
Private-sector groups told Mexican news media the attacks and subsequent precautionary shutdowns would cost businesses close to $90 million (euro65 million).
“The effect on (energy) supplies to the industrial sector is considerable,'' Pemex said in a statement. It said the affected natural gas service wouldn't be restored until Sunday or Monday.
Fire still burned at one of the bombed pipelines, but work crews had already started to repair three other stretches of pipeline, the company said on Tuesday.
Mexico's steel industry chamber Canacero said Tuesday that more than 60 percent of the country's steel production has been halted, and that it could take up to seven days to resume. In a statement, Canacero said losses would “ignificantly'' exceed the $36 million (euro26 million) the industry suffered from similar attacks on pipelines in July.
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The six explosions affected a dozen natural gas pipelines and one oil pipeline in the Gulf coast state of Veracruz, sending flames and black smoke shooting into the air but causing no direct injuries. The blasts occurred at valve stations where different pipelines intersect. Industry and national-security experts say the small leftist group claiming responsibility has proved it is a force to be reckoned with.
“The sophistication required to plan, coordinate and execute these explosions shows that the perpetrators have the technical capability of turning these episodes into either terrorist attacks or industrial sabotage,'' George Baker, a Houston-based energy analyst who follows Petroleos Mexicanos, or Pemex, wrote in a report.
The Revolutionary People's Army, or EPR, a secretive Marxist group that killed dozens of police and soldiers during attacks in the late 1990s, claimed responsibility for the explosions in a statement posted to a web site that has hosted similar communiques from the group in the past.
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The organization said it had placed 12 explosive devices, including one that did not detonate, on an equal number of pipelines and would continue to do so to demand the release of two group members missing since May. It also said it was protesting President Felipe Calderon's alleged repression of political opponents, human rights defenders and “social fighters.'' The group made similar statements in July, when it claimed responsibility for explosions along a pipeline between Mexico City and Guadalajara.
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The EPR, which says it is waging a “prolonged people's war'' against “the anti-people government,'' had been weakened by internal divisions and was largely inactive in recent years. “But something has changed because now they have the capacity to attack pipelines,'' said Mexican national-security analyst Jorge Chabat. “They're acting outside their regular sphere of influence and that is a problem.''
Chabat said the group's ability to deal a strong blow to the economy is no small matter. “If they can attack Pemex pipelines, well then yes, you have to take them seriously.''
The gas shutdown forced Volkswagen AG to suspend production at its sprawling car factory outside the central city of Puebla, possibly until Monday.
Chrysler LLC's plant in Toluca, outside Mexico City, was also shut Tuesday and could be idled for up to five days, union officials said. Natural gas is used for heating purposes in industrial processes, such as in steel blast furnaces.
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