Mexico tenders contruction and operation of Ojinaga - El Encino gas pipeline

Mexico state-owned power utility CFE this week launched a bidding round for the construction of the 254km Ojinaga-El Encino gas pipeline in the northern state of Chihuahua.

Local and foreign companies are invited to bid for this project. However, the tender documents set that 50 % of the construction materials have to be produced nationally.

The Ojinaga-El Encino pipeline will have capacity to transport 1.356 Bf3/d (38.2Mm3/d) and will cost around 5.15 billion pesos (US$395 million).

The contract will include the design, build, finance, operation and maintenance of the gas infrastructure. The contract will have a duration of 25 years.CFE has organized a site visit that will take place on July 3rd. The deadline for submission of proposals are the following:

• Technical bids: 18 September 2014
• Economic bids: 1 October 2014

The signature of the contract is expected for 19 October 2014.The gas pipeline starts at the border with the United States connecting with the Waha-Ojinaga gas pipeline and ends at Encino. It will have three other connections with chihuahua corridor, Laguna gas pipeline and with the Topolobampo pipeline. The winning bidder will be the one that offers the fixed capacity payment and the variable usage payment.Download tender documents (Spanish):http://www.cfe.gob.mx/Proveedores/3_Licitacionesprincipales/Paginas/Gasoducto-Ojinaga-El-Encino.aspx