Six teams to compete for Mexican gas pipeline

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Six teams to compete for Mexican gas pipeline

Mexico state-owned power utility CFE has shortlisted bids from six teams for the construction of the 254km Ojinaga-El Encino gas pipeline in the northern state of Chihuahua.

The shortlist is composed by:

  • Transportadora de Gas Natural del Noroeste (a subsidiary of TransCanada);
  • Fermaca Pipeline Ojinaga;
  • Omega Construcciones Industriales;
  • Gasoducto de Aguaprieta,
  • A consortium of Enagás and Elecnor, and
  • A consortium of Promotora del Desarrollo de América Latina, Energy Transfer Mexicana, Energías de México and Grupo Carso.

Companies such as TGI, Siemens, Tradeco, Samsung and Grupo México did not qualify after the evaluation. Others such as Arendal, GDF Suez, Abengoa and Tubacero did not finally submit a bid.

The review of the final proposals will be carried out on November 19th, and the CFE will issue the final result on November 25th.

It is expected that the gas pipeline will enter into operation in March 2017.

Local and foreign companies were 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.

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.

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