Nine companies comprising four groups have registered to compete for gas distribution permits in two zones in Mexico: the federal district (Mexico City) and the Cuautitlán-Texcoco Valley.
The permits will be effective for 30 years, including a 5-year exclusivity period. The same four groups will participate in both bidding procedures:
- The Mexigas consortium-Bufete Industrial Construcciones, Mexico, and Gaz de France International and Mexigas, both of France.
- Gas Natural México-Gas Natural SDG and Repsol SA, both of Spain.
- The An huac consortium-Gutsa Gas Natural of Mexico and Houston Industries Energy Inc. of the U.S.
- Proyecto de Energia de Mexico-D.F.-Grupo Diavaz and Controladora Comercial e Industrial, both of Mexico, and Lone Star Gas International of the U.S.
Mexico's Energy Regulatory Commission (CRE) said, "The participation of leading foreign and domestic distribution and construction companies in the Mexico City bids promises to deliver very close competition, as all of these consortia have had experience in previous processes."
The four groups must submit proposals that specify how they will solve issues such as subsidence, seismic activity, transit problems during pipelaying, and archaeological site or artifact discovery. None of the groups will be permitted to win both projects.
The two new distribution permits will entail the acquisition of distribution assets owned by Pemex Gas y Petroqu!mica B sica and Diganamex at their appraised values. Banobras has appraised the Federal District assets at $80 million and the Cuautitl n-Texcoco valley assets at $105 million, says CRE.
In the first stage of the bid process, CRE will evaluate technical proposals from the groups and reject any that fail. In a later stage, CRE will evaluate proposal economics.
The winners will be declared by Aug. 4, 1998.
"Development of Mexico City's natural gas distribution systems is an effective measure, in the short and long term, for reducing pollution levels," said CRE. "This bid process is a direct response to the repeated demands of ecological organizations, in view of the fact that infrastructure that supplies an environmentally friendly fuel will now be available."
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