MEXICO AWARDS FIRST GAS RIGHTS TO U.S. PARTNERS.

Byline: Gregory J. Wilcox Daily News Staff Writer

In the first deal of its kind, a partnership including Los Angeles-based Pacific Enterprises, parent of Southern California Gas Co., on Monday won the rights to distribute natural gas to Mexicali, a Mexican border city of about 700,000 people.

Subsidiaries of Pacific Enterprises and San Diego-based Enova Corp., along with Mexican partner Proxima SA, de CV, received a 12-year retail concession on natural gas in Mexicali.

The consortium will invest up to $25 million in the project during the first five years, initially providing service to commercial and industrial users and more than 25,000 residents, officials said.

Natural gas service is expected to be available in the Baja California city by 1997.

Mexicali now relies on propane and fuel oil.

The three-member group - known as Distribuidora de Gas Natural de Mexicali - beat out a partnership between Gas Natural SDG of Spain and Mexico's Repsol Gas de Saltillo SA and a joint-venture between a unit of Connecticut-based Tenneco Inc. and Canada's Westcoast Energy Inc.

It is the first license granted under a plan to sell Mexico's natural gas storage and distribution system to private investors. U.S. participants are Pacific Enterprises International and Enova International.

Officials said that the plan allows Pemex, the state-run oil and gas monopoly, to focus its efforts and resources on exploration, officials said.

``This is a historic development that promises to have great economic and environmental benefits for the people of Mexico - we are proud to be a part of it,'' Pacific Enterprises Chief Executive Officer Willis B. Wood said. ``This project represents a new era in energy development for Mexico and a significant step in our strategy to distribute natural gas in Mexico and the rest of Latin America.''

Gaston Luken, chairman of Proxima, agreed.

``Proxima considers this successful first step as a milestone in accelerating the development of Baja California in the context of a global and competitive Pacific Basin economy,'' Luken said.

Officials said Enova is eager to expand in foreign markets.

``One of Enova International's primary goals is to establish a distribution system for natural gas in Mexico and become an international provider and marketer of energy management services and products,'' said the parent company's chief executive, Stephen L. Baum.

Southern California Gas Co., a subsidiary of Pacific Enterprises, is the largest natural gas distributor in the United States with 4.7 million customers.

Enova Corp. is the parent of San Diego Gas & Electric Co. and develops power plants and natural gas delivery systems outside the United States.

Proxima is an infrastructure development and investment company with operations in Baja California and throughout Mexico.