Natural Gas Pipeline Expansion - Part 2

Tidelands Oil & Gas Corporation has received a commitment with Cheniere Corporation to fund the development of Tidelands' planned Burgos Hub Export/Import Project.
This natural gas project seeks to connect the North American pipeline grid to natural gas supplies and markets in northern Mexico.
Cheniere has purchased an 80 percent equity interest in the natural gas pipeline project in exchange for up to $9 million in current and future payments and royalties to be paid to Tidelands by third-party customers who use the natural gas pipeline.
Houston-based Cheniere (AMEX: LNG) specializes in the development of liquefied natural gas receiving terminals and natural gas pipelines along the Gulf Coast.
"With Cheniere as a partner, we will be able to accelerate development of the project to streamline the North American natural gas market," Tidelands President and CEO James B. Smith says.
San Antonio-based Tidelands (OTCBB: TIDE) received an initial payment of $1 million when Cheniere signed on to the project on Sept. 28.
Additional payments will be made as construction begins on each phase of the project. In addition, Cheniere will pay Tidelands $25,000 per month for 24 months to provide management consulting on the project.
Cheniere has also agreed to fund, at its discretion, all up-front project development fees up and until construction begins on each phase. After that time, the companies will share development expenses.
Phase I of the project will consist of a pipeline extending from a natural gas plant in Hidalgo County, Texas, to Estacion Arguelles in Tamaulipas, Mexico, eventually connecting to Monterrey.
Phase II of the project will involve the construction of a pipeline extending from a station in Donna, Texas, to another station in Mexico owned by Pemex Gas y Petroquimica Basica.
Phase III of the project will be the construction of what's called the Brazil Storage facility, an underground natural gas storage facility in Rio Bravo, Mexico.
Tideland is a developer of natural gas pipeline, storage and receiving facilities.