Mexico's Federal Electricity Commission Announces New Projects For US$10 Billion

On June 23, 2015, Mexico's Federal Electricity Commission ("CFE") announced public tenders in Mexico and the United States for more than 150 billion pesos or almost US$10 billion of new projects that will be called by the end of the year for completion by 2018. The most important of these 24 projects are the following.

South Texas-Tuxpan Natural Gas Pipeline

A US$3.1 billion investment is expected for this submarine 42-inch natural gas pipeline with an expected daily transportation capacity of 2.6 billion cubic feet and an approximate length of 800 km and 42 inches in diameter. This project will interconnect with the Tuxpan-Tula and Nueces-Brownsville gas pipelines that are also being tendered. It will satisfy the natural gas requirements of CFE power-generating assets in the States of Tamaulipas and Veracruz, as well as in the eastern, central, and western regions of the country.

The pre-bidding and bidding guidelines will be published in July 2015, and the contract is expected to be awarded in December 2015. The pipeline is expected be in commercial operation by July 2018.

Nueces-Brownsville Natural Gas Pipeline

The CFE expects a US$1.5 billion investment for this natural gas pipeline, which will be completely within south Texas in the United States. It will therefore be tendered pursuant to U.S. procedures by means of a request for proposal.

The pipeline's approximate length will be 250 km and is proposed to have a daily transportation capacity equal to the South Texas-Tuxpan Natural Gas Pipeline.

The bidding guidelines will be published in July 2015 so that bidders may submit their proposals in November 2015. The contract is expected to be awarded in December 2015, and the pipeline is expected to be in commercial operation by June 2018.

La Laguna-Aguascalientes Natural Gas Pipeline

A US$1 billion investment is expected for this pipeline, which will be approximately 600 km long and have a daily transportation capacity of 1.15 billion cubic feet. It will contribute to the natural gas requirements of CFE power-generating assets in the States of Durango, Zacatecas, and Aguascalientes.

The pre-bidding and bidding guidelines will be published in July and August 2015, respectively, with the contract expected to be awarded by December 2015. The pipeline is expected to begin commercial operation by June 2018.

Villa de Reyes-Aguascalientes-Guadalajara and Tula-Villa de Reyes Natural Gas Pipelines

The Villa de Reyes-Aguascalientes-Guadalajara...