IEnova subsidiary wins Mexico gas pipeline contract

Gasoducto de Aguaprieta, a subsidiary of energy infrastructure firm IEnova, has been awarded the contract to build the Empalme pipeline branch in Mexico's Sonora state by federal utility CFE.

The 25-year, US$10.8mn contract is for the construction and operation of the 20km, 226Mf3/d pipeline that will transport natural gas between the Sásabe-Guaymas and Guaymas-El Oro pipelines and the Empalme I and Empalme II combined cycle power plants, currently under construction.

IEnova is the Mexican unit of US firm Sempra Energy.

Gasoducto de Aguaprieta's bid was the lowest and 72% below CFE's budget for the project of US$38.8mn, the utility said in a statement.

The other bidders were Gas Natural del Noroeste and Arendal.

The pipeline is expected to begin operations in May 2017, CFE said.

The pipeline tender was the 13th CFE has held since 2014 in its bid to expand the country's natural gas pipeline network.