Pemex signs energy contracts with Atco and Mitsui

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Pemex signs energy contracts with Atco and Mitsui

Pemex, Mexico's state-owned oil company, has signed preliminary agreements to develop two power plants to supply electricity to two of Mexico's refineries,.

The projects include a 638 MW a natural gas power plant in Tula and a 380 MW natural gas power plant in Cadereyta.

The deals, which are worth US$1.4 billion, have been signed between PMX Cogeneración S.A.P.I. de C.V, a subsidiary of Pemex, and Japanese trading house Mitsui & Co. Ltd. and Canada's Atco Ltd.

The two power plants are expected to be operational by the second half of 2017.

Pemex's partnership with Grupo Hermes-Atco involves the development of a 638 MW natural gas power plant. The total project investment is estimated at US$820 million. The electricity produced from the new facility will supply Pemex's Miguel Hidalgo refinery which is located in Tula.

Pemex's partnership with Mitsui & Co. involves the development of a 380 MW natural gas power plant. The total project investment is estimated at US$590 million. The electricity produced from the new facility will supply Pemex's Hector R. Lara Sosa refinery which is located in Cadereyta.

Any excess power will be sold over Mexico's national grid.

According to the head of Pemex Gas and Basic Petrochemicals, Alejandro Martínez, Pemex will hold a minority stake of between 11 and 30% of the natural gas power plants.

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