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Pemex units to develop Mexico gas-pipeline project

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(Globalpost/GlobalPost)

Mexico City, Oct 25 (EFE).- Mexican state-owned oil giant Petroleos Mexicanos on Friday announced its decision to carry out phase II of the Los Ramones gas-pipeline project in two sections, one of which is to be constructed by two of its subsidiaries and the other in partnership with companies that have yet to be determined.

The decision is the result "of an analysis of different alternatives aimed at ensuring the execution of this great and important infrastructure project," Pemex said in a statement.

On Oct. 15, Pemex voided a planned auction of rights to develop the second phase of Los Ramones, determining that the bid submitted by a consortium of Spanish gas distributor Enagas and French energy company GDF Suez did not meet the project's requirements.

The first stretch of the second phase includes a 441-kilometer (275-mile) pipeline and two compressor stations between Los Ramones, in the northern Mexican state of Nuevo Leon, and San Luis Potosi, capital of the like-named central state.

It is to be built by two Pemex subsidiaries, TAG Pipelines and Gasoductos de Chihuahua.

Los Ramones Norte, as the first section of the second phase is known, will have an investment cost "estimated at $1.05 billion," while the second stretch - spanning the states of San Luis Potosi and Guanajuato - has a price tag of $795 million.

The new infrastructure was originally scheduled to begin operating in December 2015 and that timetable has been maintained, company spokespersons told Efe Friday.

Phase one of the same project is being built by Gasoductos del Noreste, a unit of Grupo Gasoductos de Chihuahua, and is to begin operating by December 2014.

The cross-border Los Ramones pipeline, which is to help Mexico meet burgeoning natural gas demand with cheap and much-needed U.S. imports, has been billed as one of the country's most important infrastructure projects in decades.

http://www.globalpost.com/dispatch/news/agencia-efe/131025/pemex-units-develop-mexico-gas-pipeline-project