Mexico to get second US shale gas pipeline

Mexico's national oil company Pemex has signed a deal with US based investment firms BlackRock and First Reserve to begin the second phase of a pipeline that will bring natural gas from the Eagle Ford shale to cities hundreds of miles south of the border.

Pemex CEO Emilio Lozoya-Austin signed the deal with representatives from both companies in Mexico City on Thursday last week.

Under the 25 year deal, BlackRock is investing US$4.6 billion and First Reserve is investing US$30 million in the Los Ramones II natural gas pipeline, earning them a combined 45% control of the ambitious energy project.

The Los Ramones pipeline will transport natural gas from Texas to Mexico and is intended to facilitate imports of cheap US gas and lower Mexico's high commercial electricity rates.

Edited from various sources by Elizabeth Corner

Sources: San Antonio Business JournalFox News

Published on 30/03/2015


Get your FREE Oilfield Technology magazine »

Get your FREE trial of Hydrocarbon Engineering magazine »

Get your FREE trial of World Pipelines magazine »


 
 

Related articles

Mexico pipeline round-up

A round-up of recent Mexican pipeline news.

Mexico energy reform

The Brooking Institution comments on proposed energy reform in Mexico.

Mexico projects rapid near term growth in US natural gas imports

Mexico’s energy ministry has projected rapid near term growth in natural gas imports from the US.

Mexico’s energy trade with the US

The US Energy Information Administration has released a report summarising the trade relationship between the US and Mexico.

Recommend magazines

  World Pipelines