Sempra International unit to construct natural gas pipeline network in Northwestern Mexico : Co announced that its Mexican business unit Sempra Mexico
has been awarded two contracts by Comision Federal de Electricidad
(CFE), Mexico's state-owned electric utility, to construct, own and
operate an ~500-mile (820-kilometers), $1 bln pipeline network
connecting the Northwestern states of Sonora and Sinaloa. After a
competitive and transparent international public bidding process, Sempra
Mexico's offers were selected to develop the new pipeline network. The
network will be comprised of two segments that will interconnect to the
U.S. interstate pipeline system in Arizona and will provide natural gas
to new and existing CFE power plants that currently use fuel oil. The
capacity for each segment is fully contracted by CFE under two 25-year
firm capacity contracts denominated in U.S. dollars.
U.S. natural gas is flowing to Mexico at a record
pace as demand for the fuel south of the border provides an outlet for
surging supplies that have battered prices. Exports by pipeline to
Mexico, which can't pump enough gas to meet local needs, reached 42.9
billion cubic feet in April as yields from shale formations drove U.S.
output to an all-time high. Producers are shipping the fuel as prices at
the Waha hub in west Texas, about 100 miles from Mexico, have dropped
65 percent from pre-recession levels in 2008.
Exports of U.S. natural gas into Mexico are expected to average 1.3
Bcf/d, a 450 MMcf/d increase from 2010, and the tightening of Mexican
supply/demand balances should lead to further U.S. export growth in
2012, Barclays Capital reported last week.
Exports to Mexico grew sharply in the beginning of the past decade
before stabilizing in the 850 MMcf/d range from 5001-2010; however,
first quarter 2011 exports averaged the highest in the past 10 years.
"The first segment, a 36-inch, 310-miles (500-kilometer) pipeline will run from Sasabe, south of Tucson, Ariz., to Guaymas, Sonora, and will have the capacity of 770 million cubic feet (Mcf) of natural gas per day. The new pipeline is expected to begin operations late 2014.
The second segment from Guaymas to El Oro, Sinaloa, is a 30-inch, 200-mile (320-kilometer) pipeline with a capacity of 510 Mcf of natural gas per day. The pipeline is planned to begin operations in the third quarter of 2016."
http://sempra.mediaroom.com/index.php?s=19080&item=134692
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The second segment from Guaymas to El Oro, Sinaloa, is a 30-inch, 200-mile (320-kilometer) pipeline with a capacity of 510 Mcf of natural gas per day. The pipeline is planned to begin operations in the third quarter of 2016."
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