Mexico pipeline round-up

Interocean natural gas pipeline inaugurated

A new natural gas pipeline will soon be fully operational in Mexico, where a new energy project will link production fields in the Gulf of Mexico to shipping yards in the Pacific Ocean.

Mexican President Enrique Peña-Nieto and other dignitaries traveled to Salina Cruz, Oaxaca, to inaugurate the project.

Peña-Nieto was on hand to open an interocean natural gas pipeline and oversee the beginning of construction of a fleet of ships for the project.

The natural gas pipeline extends 310 miles from Jaltipan, Veracruz, to a refinery in Salina Cruz, according to Mexico's national oil company, PEMEX.

The US$6 billion dollar project will reduce time required to move natural gas from productions areas in the Gulf of Mexico to the refinery from 16 days to seven.

Mexico recently opened its nationalised oil industry to foreign investment.

CFE awarded construction contract for EL Encino pipeline

Mexico's state power company CFE has been awarded the El Encino-La Laguna natural gas pipeline project to Fermaca Pipeline El Encino, a subsidiary of Mexican construction and engineering firm Fermaca.

Fermaca's US$530 million bid was the lowest of six proposals for the project, which CFE had budgeted to cost between US$918 million and US$1.3 billion.

The project involves design, engineering, supply, construction and maintenance work.

The 423 km El Encino-La Laguna pipeline will transport up to 1.5 billion f3/d (42.5 million m3/d) of natural gas from Waha, Texas, to CFE power stations in Mexican states Chihuahua, Coahuila and Durango as well as in central and western regions of the country.

The 42 in. pipeline will also be connected to the recently awarded Ojinaga-El Encino gas pipeline.

Ojinaga-El Encino pipeline

IEnova, the Mexican unit of US-based Sempra Energy, signed a 25 year contract with state utility CFE to build and operate the Ojinaga-El Encino natural gas pipeline between the northern states of Chihuahua and Durango.

IEnova will build the 205 km, 42 in. pipeline through its subsidiary Gasoducto de Aguaprieta.


Edited from various sources by Elizabeth Corner

Sources: San Antonio Business JournalBN AmericasBN Americas

Published on 05/01/2015


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