IEnova submits bid for Tula - Villa de Reyes gas pipeline

IEnova, the Mexican unit of US firm Sempra Energy, has announced that it has bid for the Mexican Tula - Villa de Reyes natural gas pipeline project. Mexico's Federal Electricity Commission (CFE), the state-owned electric utility of Mexico, is managing the bidding process.

The gas pipeline will supply natural gas to CFE’s power generation plants located in the states of Hidalgo and San Luis Potosí, as well as the central and western regions of the country.

The project comprises the engineering, procurement, acquisition of real estate rights, permits and governmental approvals, funding, construction, operation and maintenance of the pipeline. The concession agreement will have a period of 25 years. 

The pipeline will have a length of 280 kilometers, a 36-inch diameter and a total capacity of approximately 550 million standard cubic feet per day (MMSCFD). The total project investment is estimated at US$420 million.

According to CFE's scheduled, the contract will be awarded in April, and the gas pipeline will start operations in January 2018.

This project will be interconnected to Tuxpan - Tula gas pipeline and Villa de Reyes - Aguascalientes - Guadalajara gas pipeline, which are in tender stage.