TGI, Abengoa, GDF Suez among suitors for Mexico pipeline project

Monday, August 4, 2014

Transportadora de Gas Internacional (TGI), Abengoa and GDF Suez are among the suitors that will bid for the contracts for the engineering, construction and operation of the Ojinaga-El Encino natural gas pipeline in Mexico's Chihuahua state, according to state-owned utility CFE.

Other firms that have expressed an interest and attended a meeting on Friday with CFE officials regarding the pipeline tender are Promigas, Dica Infraestructura¡, Hidrola, Enegas, Gasoducto de Agua Prieta and Arandal.

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Sempra Energy's local affiliate IEnova will also participate in the Ojinaga-El Encino bid, as well as in the El Encino-La Laguna tender, the subsidiary's external affairs and business development VP, Tania Ortíz, said in a presentation.

Last week CFE launched international tenders for natural gas pipelines Ramal-Tula and El Encino-La Laguna following last month's call for Ojinaga-El Encino.

The first pipeline will run 50km from the US border at El Ojinaga in Chihuahua to El Encino in Durango state, with a 24-inch diameter and transportation capacity of 38.2Mm3/d.

The second, running 10km from Cempoala to Tula in central Hidalgo state, will have a 48-inch diameter and transportation capacity of 13.7Mm3/d, while the third will run 423km from El Encino to La Laguna in Durango state, with transportation capacity of 4.2Mm3/d.

The tenders are for engineering, construction and 25-year operation contacts.

In May, CFE and the government of Durango state signed an agreement to build the El Encino-La Laguna pipeline, which will be crucial to the economic development and sustainability of Durango, CFE chief executive Enrique Ochoa Reza said at the time.

Mexico plans to build 22 natural gas pipelines over the next 15 years to increase supply as it strives to boost output to meet rising demand and to reduce electricity prices and feed the petrochemical industry.

The tenders can be viewed here in Spanish.

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