Decision Expected Soon On $600 Million Central Mexico Pipeline

October 2009 Vol. 236 No. 10

Pemex will seek bids on a $600 million natural gas pipeline project in central Mexico.

Representatives from 18 pipeline, construction and infrastructure development firms have shown interest in the project. To raise transmission capacity by 400 MMcf/d, the plan calls for a 143-mile pipeline from Tamazunchale to San Luis de la Paz and a 35-mile line from San Luis de la Paz to San Jose Iturbide.

Companies that choose to participate in the tender for the 20-year service contract will determine the route the line should take as well as technical specifications, Pemex said. Pemex unveiled plans for the project last December and had expected to initiate the tender process in the second quarter.

While Mexico’s oil and upstream gas activities are restricted to the state company, natural gas transmission, distribution and storage has been open to the private sector since 1995.