Gas Natural Fenosa plans to invest US$96mn in Mexico

Gas Natural Fenosa plans to invest up to 1.4bn pesos (US$96mn) in Mexico next year to expand its supply network and client portfolio.

The Spanish company expects to add 130,000 new clients in 2014 and another 145 new clients in 2015 as a result of contracts it was awarded in the states of Sonora and Sinaloa, country manager Ángel Lárraga told official newswire Notimex.

The increase in the use of natural gas in Mexico is "unstoppable" due to low prices, he said.

"Investment in organic growth in the states where we already operate will be around 1.2bn-1.4bn pesos, in addition to investment in new projects," Lárraga was quoted as saying.

The company plans to invest 250mn pesos in Sonora and Sinaloa and around 120mn pesos in industrial development, he added.

He said that Fenosa would continue to bid for natural gas distribution contracts put out to tender by Mexico's energy regulatory commission (CRE), as well as for combined cycle projects tendered by state utility CFE.

The firm currently has 1.4mn out of Mexico's 2mn natural gas users. There are 20mn LPG users in the country.

"This is a fraction compared to the country's 20mn LPG users, and is due to the lack of [natural gas] infrastructure, which is mostly concentrated in Nuevo León state," he said.

The firm is also considering developing additional renewable energy projects, such as the 240MW Bii Hioxo wind farm that it operates in Oaxaca state.

In July, the firm announced it would invest 8bn pesos in the expansion of Mexico City's gas distribution infrastructure over the next four years.

Gas Natural Fenosa is Mexico's largest natural gas supplier, with half its customers in the capital and half in Nuevo León state capital Monterrey.