Sempra expects 25% share of US$1bn Los Ramones Norte pipeline
Through its Mexico unit IEnova (BMV: IENOVA), California-based Sempra Energy (NYSE: SRE) expects a minimum 25% stake in Mexican national oil company Pemex's US$1bn Los Ramones Norte natural gas pipeline, Sempra CEO Debra Reed said in a quarterly webcast.
"We are working with Pemex to define the terms of the contract and expect IEnova to get at least a 25% stake," Reed said.
Last month, Pemex's gas unit PGPB declared void a tender for the Los Ramones II pipeline in which IEnova participated but did not table a bid.
"We didn't think there was enough time to do an effective bid," said Mark Snell, Sempra's president. He said the firm unsuccessfully lobbied for Pemex to extend the tender deadlines.
After announcing the tender void, PGPB announced the line would be split into two sections, the 441km Los Ramones Norte and 287km Los Ramones Sur.
It intends to form a JV with Gasoductos de Chiahuahua, itself a 50-50 JV between IEnova and PGPB, through which IEnova should come out with a 25% stake in Los Ramones Norte. A JV with France's GDF Suez is expected to be formed for Los Ramones Sur.
Snell says PGPB came back to IEnova for the direct award because of "their long history of doing projects with them and a JV that has been very very successful."
He also said IEnova would be able to meet PGPB's strict time and monetary restrictions for the project.
MEXICAN TAX REFORM
Sempra expects Mexico's tax reform to negatively impact Q4 results if it is implemented before year's end, according to CFO Joe Householder.
Mexico's corporate tax rate had been expected to decrease from 30% to 28% but reform, which is expected to become law by year's end, kept the rate at 30%. Sempra says the negative impact on Q4 earnings will be US$0.05/share.
However, "the impact should not be significant on earnings," in the future, said Householder.
SIERRA JUÁREZ WIND
IEnova is in negotiations with an unnamed firm to create a JV for the 155MW Sierra Juárez wind farm in Baja California's La Rumorsa region, CEO Reed said in the webcast.
A JV was initially being discussed with BP Wind but that has fallen through. Finalization of a JV may not be completed this year, which would defer a US$0.05/share earnings boost Sempra was expecting from the project.
MEXICO ENERGY REFORM
IEnova may venture outside of natural gas in Mexico if energy reform passes, CEO Reed said.
"We see a lot of gas opportunities, but I would not limit it to that. I think there are good opportunities for us to expand out of natural gas," she said.
However, the firm's growth in Mexico does not hinge on passage of energy reform.
"With or without reform, we're very positioned in Mexico to continue to build out energy infrastructure," said president Snell.
Sempra's international segment recorded Q3 earnings of US$78mn, down from US$82mn in the year-ago quarter, due primarily to a US$9mn dilution from IEnova's March IPO on Mexican bourse BMV.
In South American utilities, earnings through September have been in line with expectations.
Details from IEnova's Q3 results are available here.
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: Electric Power (Mexico)
Mexico to study potential of radioactive minerals
Geological service SGM plans to carry out 10 studies in 2024 and 2025 in the states of Chihuahua, Coahuila, Durango and Sonora, with a budget of US...
LatAm's oil and gas future: Shale, deep water and the elephant in the room
Carlos Garibaldi, executive secretary of the Association of Oil, Gas and Renewable Energy Companies of Latin America and the Caribbean (Arpel), tel...
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects in: Electric Power (Mexico)
Get critical information about thousands of Electric Power projects in Latin America: what stages they're in, capex, related companies, contacts and more.
- Project: Construction of 2 New Circuits for the Traconis Medium Voltage Substation (TRC), in the Municipality of Centro, in the State of Tabasco. PO 702/2023 PEC 199/2023.
- Current stage:
- Updated:
2 weeks ago
- Project: DJ-O-CA-044-2024 INSTALLATION OF EQUIPMENT FOR THE SMART ELECTRICAL GRID (REI) IN THE ZTJO III SUBSTATIONS
- Current stage:
- Updated:
2 weeks ago
Other companies in: Electric Power (Mexico)
Get critical information about thousands of Electric Power companies in Latin America: their projects, contacts, shareholders, related news and more.
- Company: Voltalia Mexico Renovables
- Company: Soluciones Integradas para Infraestructura Electrica de Potencia S.A. de C.V.  (SIIEP)
-
The Mexican engineering company SIIEP offers design, execution and commissioning solutions for electricity projects, including substations, transmission lines, and wind and sola...
- Company: Acciona Energía México, S. de R.L. de C.V.  (Acciona Energía México)
-
Acciona Energía México is the local subsidiary of Spanish renewable energy operator Acciona's energy division. The company develops wind and photovoltaic projects, offering Engi...
- Company: Avanzia Instalaciones, S.A. de C.V.  (Grupo Avanzia)
-
Avanzia Instalaciones S.A. odeC.V. (Grupo Avanzia) is a Mexican subsidiary of Spanish company Cobra Instalaciones y Servicios S.A. (Grupo Cobra). It is dedicated to construction...
- Company: ICA Fluor, S. de R.L. de C.V.  (ICA Fluor)
-
ICA-Fluor Daniel, S. de R.L. de C.V. (ICA Fluor) is a JV formed in 1993 between Mexican engineering construction group ICA and US-based engineering, procurement, construction an...
- Company: Wind Pro, S. A. P. I. de C. V.