Mexico’s CFE to tender $2.8 bln in power plant, pipeline projects

Mexico’s national power company CFE said on Monday it will offer $2.8 billion in natural gas and electricity infrastructure project contracts by the end of this year aimed at boosting economic growth…ready full story here.

Key Points:

  • The projects include two combined-cycle power plants, two natural gas pipelines as well as an electricity transmission project, all located near Mexico’s northern border with the United States.
  • The scheme is designed to boost natural gas imports from the U.S. and over time help lower electricity rates via cheaper inputs and more modern power infrastructure.
  • Companies including IEnova, the Mexican unit of U.S. energy firm Sempra Energy, South Korea’s KEPCO and France’s GDF Suez are widely expected to compete for the contracts.
  • CFE Chief Executive Enrique Ochoa said the contracts will be open to private firms in international public tenders and the projects are expected to enter into operation by 2017.
  • Norte III power plant
    • 19 miles (30 km) south of the border city of Ciudad Juarez
    •  $1 billion
    •  installed capacity of 928 megawatts
    • winning bid will be announced in December.
  • Guaymas II power plant
    •  northwestern Sonora state
    • $822 million
    •  installed capacity of 714 megawatts
    • winning bid will be announced in December
  • Encino-La Laguna natural gas pipeline
    •  263 mile (423 km)
    • transport gas from southern Texas and supply northern Chihuahua and Durango states
    • $650 million
    •  winning bid will be announced in October
  • Huasteca-Monterrey transmission line
    • 268 miles (432 km)
    • crossing northern Tamaulipas and Nuevo Leon states
    • $257 million
    • winning bid will be announced in November
  • San Isidro-Samalayuca natural gas pipeline
    • 14 mile (23 km)
    • transport gas from southern Texas to the new Norte III power plant in Chihuahua state
    • $50 million
    • winning bid will be announced in December