Fermaca to open La Laguna-Aguascalientes pipeline after CFE deal

Mexican pipeline company Fermaca will start operations on the La Laguna-Aguascalientes gas pipeline after it reached an agreement with state-owned power company CFE.

The 453km pipeline runs through 25 municipalities in the states of Durango, Zacatecas and Aguascalientes and requires a 14.4bn-peso (US$751mn) in investment, the company said.

"With this pipeline, we reaffirm our commitment to Mexico and to the development of projects that guarantee sustainable and long-term energy supply for the country, ensuring a more prosperous future," Fermaca CEO Manuel Calvillo said, according to local media outlet Sentido Común.

Mexico has made significant headway in 2019 in re-negotiating pipeline contracts setup in the previous administration of Enrique Peña Nieto, for example the breakthrough deals with IEnova and TC Energy in August.

Fermaca, considered to be the second largest natural gas infrastructure provider in Mexico, is the last of the pipeline companies to reach an agreement, with other negotiations now completed including those with Grupo Carso, headed by Carlos Slim.

The pipeline has 13 valves that are operated by remote control and a 27,600 HP compression station, which required 240,000t of steel pipes, acquired domestically.