Mexico to invite bids for five natural gas pipelines

April 24, 2014

Mexico's federal power company CFE will launch calls for bids to build five natural gas pipelines requiring a total US$2.25bn investment, the firm's CEO said at a forum in Mexico City, Business News Americas reported on April 23.

CFE's CEO Enrique Ochoa Reza said the calls for tenders will be made in the coming days, in coordination with the energy ministry (Sener), to increase Mexico's supply of natural gas to increase electricity generation and bring down prices to final consumers.

The first project will run from Ojinaga to El Encino in Chihuahua state, a 254km stretch capable of transporting 1.35Bf3/d (38.2Mm3/d) and requiring a US$400mn investment, Ochoa Reza said at the Expo Foro organized by Pemex in Mexico City, featuring an exhibition and series of conferences organized by the state-owned oil firm.

The second gas pipeline would run 423km between El Encino and La Laguna, in Durango state, with the capacity to transport 1.5Bf3/d and requiring a US$650mn investment. The third, 300km pipeline would connect Waha, in the US, to Samalayuca, Chihuahua, transporting 1.45Bf3/d and requiring an initial investment of US$550mn.

The fourth pipeline would connect Waha with Ojinaga in Chihuahua, with a capacity for 1.35Bf3/d of natural gas and requiring a US$400mn investment, while the fifth would connect Ehrenberg in the US with San Luis Río Colorado in the Mexican state of Sonora, requiring a US$250mn investment and with the capacity to transport 130Mf3/d of natural gas.

Copyright: Business News Americas, 2014