Sempra Energy has announced that Infraestructura Marina del Golfo (IMG), the joint venture between its Mexican unit Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) and TransCanada Corporation, has been awarded a transportation contract by the Comision Federal de Electricidad (CFE) to build, own and operate an 800 km, US$2.1 billion natural gas pipeline in Mexico.
The 42-inch diameter South Texas-Tuxpan pipeline will have a capacity of 2.6 billion cubic feet per day and an anticipated in-service date of late 2018. The pipeline will transport natural gas from a point near Brownsville, Texas, to Tuxpan, Veracruz, and it will provide natural gas to new and existing CFE power plants that currently use fuel oil. The project is contracted by CFE under a 25-year capacity contract denominated in U.S. dollars.
IMG will be responsible for implementing the project, including permitting, acquiring land and rights of way, engineering, procurement, construction, financing, operation and maintenance. IEnova holds a 40 percent ownership of IMG's joint venture.
Mark Snell, president of Sempra Energy, said:
"We are pleased with the results of the tender and look forward to continue to grow our presence in Mexico while helping the country meet its energy demand with new safe and reliable services."