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.Back on July 20, 2011, the following story was posted:
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.And June 27, 2011, a similar story:
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.