Skip to main content

IEnova wins Mexico natural gas pipeline contract

Published by , Senior Editor
World Pipelines,


A unit of energy infrastructure company IEnova, the Mexican subsidiary of US firm Sempra Energy, has announced that Mexico's state power company CFE had awarded it a 25 year contract to build and operate a natural gas pipeline in the north of the country.

IEnova said in a filing it had been awarded the contract for the Ojinaga-El Encino pipeline project in northern Chihuahua state.

CFE has said the 254 km natural gas pipeline will need an investment of about US$ 400 million.

Earlier this year, CFE announced various infrastructure projects near Mexico's northern border with the United States that are part of the company's aim to boost US natural gas imports and help lower electricity rates via cheaper inputs and more modern power infrastructure.

Under the terms of the contract, IEnova will provide the transportation services of natural gas to the CFE for a term of 25 years. The pipeline is expected to begin operations during Q1 2017.

The company noted that the 42 in. diameter pipeline will have a design capacity capable of transporting approximately 1.4 billion ft3/d of natural gas.

Carlos Ruiz Sacristan, Chairman and CEO of IEnova, said, "This is a result of our experience in building energy infrastructure projects and our commitment with the development of Mexico. I would like to highlight that the tender process was conducted by the CFE with transparency and professionalism. This was a competitive bid in which five other companies participated."


Edited from various sources by Elizabeth Corner

Sources: Reuters, Nasdaq

Read the article online at: https://www.worldpipelines.com/contracts-and-tenders/25112014/ienova-wins-mexico-natural-gas-pipeline-contract/

You might also like

 
 

Embed article link: (copy the HTML code below):