Mexico's Pemex to resume gas, oil supply on Monday

MEXICO CITY, Sept 16 | Mon Sep 17, 2007 2:10am BST

MEXICO CITY, Sept 16 (Reuters) - Mexican state-owned monopoly Pemex said on Sunday it will resume natural gas and oil supply to its clients starting on Monday after attacks on several of its pipelines last week cut off flow.

The Popular Revolutionary Army, or EPR, blew up key ducts last Monday in its biggest attack on economic targets since emerging in mountain villages of southern Mexico in the mid-1990s.

The attacks, which occurred mostly in the state of Veracruz, caused hundreds of millions of dollars of damage to Pemex and industry.

Pipeline damage cut off a quarter of Mexico's natural gas flow, halting 60 percent of the country's steel industry and hitting some 2,500 companies, with daily losses of $100 million.

Mexico is the world's No. 5 producer of oil and a top U.S. supplier. Crude exports were not affected by the attacks.

Most of the gas and oil supply is expected to be fully restored by Tuesday, Pemex said.

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