Construction starts on Ramones Phase II South pipeline project in Mexico

GDF Suez and Pemex have started construction on the Ramones Phase II South pipeline project in Mexico.

The Ramones II South is a segment of the Ramones natural gas pipeline system energy infrastructure project, extending from the Texas border to central Mexico.

The pipeline, which is expected to cost $1bn, will span 291km from San Luis Potosi to Apaseo El Alto, Guanajuato.

ICA Fluor is building the pipeline, which will be capable of supplying 1.4 billion cubic feet of natural gas per day.

GDF Suez will operate and maintain the project, which is expected to be completed by the end of 2015.

In total, the Ramones pipeline will be more than 1,000km-long, allowing for the import of approximately 2.1 billion cubic feet of natural gas per day from the US.

GDF Suez chairman and CEO Gerard Mestrallet said: "We are delighted to begin construction of the Ramones II South pipeline, which will be key to the expansion of the natural gas transportation system in Mexico.

"This investment demonstrates our group’s confidence in Mexico’s growing economy and our commitment to play an important role as an investor in Mexico’s energy future."

GDF Suez, which started operating in Mexico more than 15 years ago, currently operates approximately 1,000km of pipelines in the country.

The company also operates six local gas distribution firms serving more than 400,000 customers and three natural gas-fired power plants in Mexico.

In recent years, Mexico’s dependence on natural gas from the US has been increasing as the state-run Pemex has shifted its limited resources to oil production.

However, due to the recent reforms introduced by the government, it has broken Pemex’s monopoly, which is in turn expected to attract investors to boost the country’s production.

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Image: Mexico’s dependence on natural gas from the US has increased in recent years. Photo: courtesy of supakitmod / FreeDigitalPhotos.net.