Sempra to construct $1bn pipeline network in Mexico

Sempra International has announced that its Mexican company, Sempra Mexico, has been awarded two contracts to construct a pipeline network connecting the north-western states of Sonora and Sinaloa at an estimated cost of $1bn.

The contracts were awarded by the Comision Federal de Electricidad (CFE), Mexico’s state-owned electric utility.

Sempra Mexico will develop and operate approximately 820km of pipeline network comprised of two segments.

The segments will interconnect to the US interstate pipeline system in Arizona and are expected to provide natural gas to new and existing CFE power plants that currently use fuel oil.

CFE has entered into two 25-year firm capacity contracts for each segment.

The 36in, 500km first segment will have the capacity for 770 million cubic feet of natural gas per day, which will run from Sasabe, south of Tucson, Ariz., to Guaymas, Sonora.

The 30in, 320km second segment will have a capacity of 510 million cubic feet of natural gas per day, which will run from Guaymas to El Oro, Sinaloa.

Sempra International president and CEO George Liparidis said, "These projects represent an extension of our core business in Mexico and an important part of our plan to grow our international business."

Sempra Mexico president and CEO Carlos Ruiz said,"This new pipeline network will provide reliable access to clean natural gas to CFE’s plants in Sonora and Sinaloa."