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Million of Dollars for the Construction of 5 Gas Pipelines in Mexico

20 May, 2014

The general director of the Federated Electricity Commission (CFE), Enrique Ochoa Reza, announced that 2,250 million dollars will be tendered from both public funds and private investors for the construction of five new gas pipelines in the country.

Ochoa said the first gas pipeline to be constructed is to run from the Ojinaga and El Encino communities, both in the state of Chihuahua.  The cost for this portion is estimated to be around 400 million dollars. This pipeline will be 254 kilometers in length and can carry approximately 1,350 million cubic feet of oil per day.

Upon completion, a total of 5,780 million cubic feet of oil will be traveling through 1,500 miles of pipeline. The pipeline will be constructed and run through the states of Chihuahua, Durango, Sonora, and across the border into the United States through Arizona and Texas.

Ochoa stated that Mexico promotes the construction of more pipelines to increase the reliability of the transport system of this fuel in the country. Ochoa also stressed that this energy reform will allow CFE to become an energy company supplying both electricity and natural gas.

It is expected that this huge investment in energy infrastructure will provide Mexico "fuels at competitive prices."

This energy reform initiative is intended to increase natural gas production from the 5,700 million cubic feet per day currently produced, up to 8,000 million by 2018, which will position Mexico as an exporter of this fuel.

Topics: Investment Infrastructure