CFE plans to construct new natural gas pipelines in Mexico

Mexico’s stated-owned electric utility, Comisión Federal de Electricidad (CFE), is planning to seek private sector bids for five natural gas pipelines in northern Mexico. The pipelines will reportedly cost around US$ 2.25 billion to construct and will have a combined capacity to transport 1.78 billion ft³/d of natural gas.

The first pipeline, located in northern Chihuahua state, is expected to span a distance of 158 miles and will transport some 350 million ft³/d of gas. Investment in this project is expected to be approximately US$ 400 million.

Three of the pipelines will run from the US, one from Ehrenberg, Arizona, and two from Waha, West Texas. Additionally, state-owned petroleum company Pemex is supervising the construction of the Los Ramones pipeline, which runs from south Texas to central Mexico. The pipeline, once completed, is expected to triple Mexico’s imports of natural gas to the US.

Lack of infrastructure and natural gas shortages throughout Mexico have resulted in the country missing out on many of the benefits offered by the US shale gas boom. Enrique Ochoa, Director of CFE, stated that the new projects would add capacity to Mexico’s pipeline network and increase its overall reliability.

Edited from various sources by Rosalie Starling

Read the article online at: https://www.worldpipelines.com/business-news/23042014/cfe_plans_to_construct_new_natural_gas_pipelines_in_mexico_227/