Mexico launches tender for Waha-Presidio natural gas pipeline

Mexico's Electricity Federal Commission has issued a request for proposals (RFP) to develop the Waha-Presidio natural gas pipeline.

The project involves the design, development, construction, and operation of:

• a header system near the Waha Hub area capable of transporting capacity of 2.831 Bcf/d or 2.525 Bcf/d
• a new natural gas transportation pipeline of at least 42” in diameter from the CFE Waha Header to the Mexico/United States border in Presidio, Texas, with transporting capacity of 1.356 Bcf/d
• a new natural gas transportation pipeline of at least 42” in diameter from the CFE Waha Header to the Mexico/United States border in Presidio, Texas, with transporting capacity of 1.356 Bcf/d
• fiber optic lines and associated ducts, hatchways, and network connections, among others.

The preliminary schedule for the tender process is:

• Send invitations to meeting with Bidders (Electronic): August 25, 2014
• Meeting with Bidders (Houston, Texas): September 9, 2014
• RFP release (Electronic): September 30, 2014
• Submission of Bidder questions (Electronic): 6:00 P.M. (US Central Time), October 10, 2014
• Initial publication of questions and answers (Electronic): October 15, 2014
• Bidder question and answer session (Houston, Texas, exact location TBD): October 17, 2014
• Publish final set of questions and answers; if necessary release of revised RFP (Electronic): October 22, 2014
• Submission of final proposals hand delivered (Houston, Texas, exact location TBD ): 10:00 A.M. to 1:00 P.M. (US Central Time), November 16, 2014
• Announcement of winning bidder (Houston, Texas, exact location TBD): December 8, 2014
• Execution of TSA (Mexico City, Mexico, exact location TBD): within 25 business days from announcement of winning bidder

After the 25th year of service the preferred bidder shall, at CFE’s election enter into a joint venture (JV) with CFE to own and operate the assets of the project.

CFE will acquire its portion of the JV’s equity at no cost. CFE will be entitled to 49% of the project’s net income from the start of year 26.

Interested parties must submit their proposals on or before 16 November 2014. The preferred bidder is expected to be announced on 8 December 2014.

See RFP:

http://www.cfe.gob.mx/Proveedores/3_Licitacionesprincipales/RequestforproposalWaha-Presidio.pdf