After a competitive and transparent international public bidding process, Sempra Mexico's offers were selected to develop the new pipeline network. The network will be comprised of two segments that will interconnect to the US’ interstate pipeline system in Arizona and will provide natural gas to new and existing CFE power plants that currently use fuel oil.
The capacity for each segment is fully contracted by CFE under two 25-year firm capacity contracts denominated in US dollars.
"We are pleased to have been awarded these projects, which will strengthen the gas transportation system in northern Mexico," said President and CEO of Sempra International George Liparidis. "These projects represent an extension of our core business in Mexico and an important part of our plan to grow our international business."
The first segment, a 36 inch, 500 km pipeline will run from Sasabe, south of Tucson, Arizona, to Guaymas, Sonora, and will have the capacity of 770 Mcf of natural gas per day. The new pipeline is expected to begin operations late 2014.Article continues below…
The second segment from Guaymas to El Oro, Sinaloa, is a 30 inch, 320 km pipeline with a capacity of 510 Mcf of natural gas per day. The pipeline is planned to begin operations in the third quarter of 2016.