The Federal Electricity Commission (CFE) of Mexico has awarded the Waha-Presidio natural gas pipeline project to a consortium that includes Carlos Slim’s Carso Energy.
The wining consortium is formed by US companies Energy Transfer Partners and MasTec Inc, and Mexico's Carso Energy. The team presented the lowest bid of US$767 million for the project, which is much less than the US$1,365 million previously estimated.
The project involves the development of a 230 km (143 mile) pipeline to supply gas to central, northern and western Mexico.
The project involves the design, development, construction, and operation of:
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.
The project is expected to be operational by March 2017.
The CFE has also awarded the El Encino – La Laguna natural gas pipeline project to a subsidiary of Femaca.
We have recently reported about two gas pipeline projects in our intelligence platform: