Mexico's CFE lets contract to Sempra for gas pipeline

Mexico’s Federal Electricity Commission (CFE) has awarded Sempra Mexico a contract to build, own, and operate a 500-mile, $1 billion pipeline network connecting the northwestern Mexico states of Sonora and Sinaloa. The network will consist of two segments interconnecting with the US interstate pipeline system in Arizona, shipping natural gas to new and existing CFE power plants currently using fuel oil.

The first segment, a 36-in. OD, 310-mile pipeline, will run from Sasabe, south of Tucson, Ariz., to Guaymas, Sonora, shipping 770 MMcfd by late 2014. The second segmentm from Guaymas to El Oro, Sinaloa, is a 30-in. OD, 200-mile pipeline moving 510 MMcfd. CFE expects to start the second line third-quarter 2016. CFE has fully contracted system capacity under two 25-year firm contracts denominated in US dollars.

Sempra Mexico is a wholly owned subsidiary of Sempra International, one of four principal operating divisions of Sempra Energy. Sempra Mexico operates more than 430 miles of natural and LPG pipelines in northern Mexico.

TransCanada contracted earlier this year to extend its Tamazunchale natural gas pipeline to serve a CFE combined-cycle power generating facility near El Sauz, Queretaro (OGJ Online, Feb. 24, 2012).

Contact Christopher E. Smith at chriss@ogjonline.com.

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