Mexico's Fermaca wins El Encino - La Laguna natural gas pipeline project

Mexico's state power company CFE has awarded the contract for the development of the El Encino - La Laguna natural gas pipeline project to a subsidiary of Femaca.

The firm beat out competition from four other bidders though a proposal that considered an investment of US$630 million. The four other teams are:

• Enagás Internacional, S.L.U. and Elecnor, S.A.;
• Transportadora de Gas Natural del Noroeste, S. de R.L. de C.V. (Transcanada);
• Promotora del Desarrollo de América Latina, S.A. de C.V., Energy Transfer Mexicana, LLC, MTCO Energías de México, S. de R.L. de C.V. and Carso Energy, S.A. de C.V.;
• Gasoducto de Aguaprieta, S. de R.L. de C.V. (Sempra)

The 423 kilometer, 42-inch diameter pipeline will have a design capacity to transport up to42.5 million m³ per day of natural gas from Waha, Texas, to satisfy Mexico's power sector needs in the north, central and western regions of the country.

The contract will include the design, build, finance, operation and maintenance of the gas infrastructure.

Commercial operations are due to begin in March 2017.

This gas pipeline will be connected to the gas pipeline from Ojinaga to El Encino, which was awarded on 24 November 2014 to IEnova, a subsidiary of Sempra,