ATCO lands 638MW Mexico co-generation project

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Monday, October 27, 2014

Canada's ATCO has been awarded a contract to build a natural gas co-generation plant in Mexico for a Pemex subsidiary.

The 638MW project at the state oil company's Tula refinery, in the central state of Hidalgo, will be developed in conjunction with Mexico's Grupo Hermés.

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The plant will be delivered to PMX Cogeneración, a subsidiary of the Mexican NOC.

ATCO will be responsible for around half of the total cost of the project, which is estimated at US$820mn, the Alberta-based company said in a press release.

Approval of the partnership is expected in 2015 and the plant is slated to enter operation in 2H17.

The contract is the second major project in Mexico to be awarded to ATCO this month, having won a contract from state utility CFE to design, build, operate and maintain a natural gas pipeline, also near Tula.

The 485Mf3/d (13.7Mm3) pipeline, expected to begin operating in September 2015, will transport natural gas some 17km from the Zempoala-Santa Ana system to the Francisco Pérez Ríos power plant, ATCO said on October 9.