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Mexico's Pemex splits gas pipeline project into two phases

World Pipelines,


Mexico’s Petroleos Mexicanos (Pemex) has announced that it will carry out phase II of the Mexico gas pipeline project, one of which is to be constructed by two of its subsidiaries and the other in partnership with companies that have yet to be determined.

According to Pemex, the decision is the result “of an analysis of different alternatives aimed at ensuring the execution of this great and important infrastructure project.”

Los Ramones – North and South
The Los Ramones project is designed to carry natural gas from South Texas to Central Mexico, where industries have suffered from a lack of fuel supply. The pipeline has been billed as one of the country’s most important infrastructure projects in decades, eventually supplying a fifth of Mexico’s total natural gas demand.

On the 15th October, Pemex rejected the sole bid from a consortium led by Spain’s Enages Internacional to build a 740 km stretch of the line, saying it failed to meet the project’s requirements. Earlier this week, Pemex announced in a statement that it would split the remainder of the proposed pipeline in two.

The second phase will be divided into Ramones North and Ramones South. Ramones North will be developed alone by two Pemex subsidiaries, TAG Pipelines and Gasoductos de Chihuahua. The Ramones North involves investment of US$ 1 billion for a 441 km stretch of pipeline and two compressor stations

Pemex will seek private partners for the Ramones South section, announcing that they are currently “analysing various options to involve the participation of certain companies as partners.” The 189 km section involves the construction of one compressor station, and is expected to need investment of US$ 795 million.

According to Pemex, “Petroleos Mexicanos guarantees that the entire project, involving investment of more than US$ 1.8 billion, will be enveloped with similar costs to those originally set out, with competitive tariffs.”

Edited from various sources by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/28102013/mexicos_pemex_splits_gas_pipeline_project_into_two_phases/

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