CFE watch: Gas pipeline tenders

- Wednesday, October 12, 2011

CFE watch: Gas pipeline tenders

Mexican state power company CFE will receive bids on November 1 for the EPC of its Chihuahua Corridor gas pipeline that will transport gas from the US for power generation in Chihuahua, Durango and Coahuila states, according to a record from the fourth project meeting.

The pipeline will move up to 850Mf3/d (24Mm3/d) of natural gas some 385km from Ciudad Juárez to El Encino, both of which are in Chihuahua state. In El Encino, the pipeline will connect with the Chihuahua-Torreón pipeline that forms part of Mexico's national gas system (SNG).

As of the fourth project meeting, 37 firms purchased bidding rules.

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The pipeline aims to cover the current gas deficit in northern Mexico, grant flexibility to the SNG, and provide gas to new power plants set to come online in the coming years, CFE has said previously.

Four gas power plants are slated to come online in 2013-20: Norte II (459MW), Norte III (954MW), Norte IV (918MW) and Norte V (944MW).

The Chihuahua Corridor pipeline contract will be for a 25-year period.

CFE will hold the fifth project meeting on October 17. Works are scheduled to run through mid-2013.

The tender number is LPI-SCPIF-002/11.


CFE received bids on October 11 for a roughly 160km natural gas pipeline that will run from Tlaxcala state to Morelos state, according to a document from the eighth and final project meeting.

As of the final project meeting, 38 companies had purchased bidding rules.

The pipeline will bring gas to Morelos state's power plants and industrial area that have to date lacked access, and thus primarily consume fuel oil and other refined products.

The pipeline will initially move some 120Mf3/d to the 600MW Centro I power plant scheduled to start operations in 2012. A second stage would bump capacity up by another 120Mf3/d for the 600MW Centro II plant, due to come online in 2015.

The project could eventually ramp up to 320Mf3/d transport capacity.

CFE previously estimated the cost of the pipeline to be US$170mn. The contract will have a 25-year term.

The tender number is LPI-SCPIF-001/11.


And a total 25 companies purchased bidding rules for CFE's international tender for the EPC of its 630Mf3/d Tamazunchale-El Sauz gas pipeline as of the third project meeting, according to the meeting's record.

The roughly 200km pipeline project in central Mexico will connect the SNG's Palmillas-Querétaro pipeline with the private Naranjos-Tamazunchale pipeline. It will improve redundancy and provide gas to new plants scheduled to come online through 2024.

CFE will hold the fourth project meeting on October 20. When the tender was launched, commercial operations were slated to begin in December 2013.

The contract will have a 25-year term. The winning bidder must leave the pipeline in condition to be connected to the future generation plant in Tula, Hidalgo state.

The tender number is LPI-SCPIF-003/11.