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Mexico Invests in Energy Projects


The Secretary of Energy, Pedro Joaquín Coldwell, and the General Director of the CFE Enrique Ochoa Reza announced the concessions for five mega projects that represent a total of $2.8 billion that add 1,642 megawatts (MW) of generation to total installed capacity for Mexico.

The five projects include two pipelines, two thermoelectric plants and one transmission line, all being launched and constructed as part of the much talked about Energy Reform in Mexico.

These projects also form part of President Enrique Pena Nieto's National Infrastructure Plan 204-2018, which he presented on April 28, 2014, aimed at boosting the economy.

The details on the five projects are as follows:

Pipelines:

  • El Encino - La Laguna: This pipeline will transport natural gas from Waha, Texas, and will be 423 km, running through Chihuahua and Durango. This pipeline will be connecting the Ojinaga - El Encino with future pipelines that will run through the center of the country. Total investment is estimated to be $650 million and commercial operation planned for March 2017.
  • The San Isidro - Samalayuca: This pipeline will transport natural gas from the United States to the combined cycle plan Norte III, which is located in Samalayuca, Chihuahua. The pipeline will be 23-km long and will require an investment of $50 million. The commercial operation is planned for July 2016.

Power Generation Plants:

  • The combined cycle plant Norte III: Located in Ciudad Juarez, Chihuahua, this thermoelectric plant which uses natural gas will have 928 MW of installed capacity and 788 MW installed summer capacity. This will be considered an external energy producer and will have a 25-year power generation contract with CFE. Total investment is estimated at $1.028 billion and will be commercially operational by October 2017.
  • The combined cycle plant Guaymas II: This project will be located in Empalme, Sonora, and will be a natural gas thermoelectric plant with a total of 714 MW capacity. The plant will be constructed under the Financed Public Works Program and total investment is estimated to be $822 million. Commercial operation is planned for May 2017.

Transmission Line:

  • The Huasteca - Monterrey Transmission Line: The transmission line will be a 432-kw circuit, constructed under the Financed Public Works Program and includes two substations and three transmission lines. The project will be located in the states of Tamaulipas and Nuevo Leon and will require an investment of approximately $257 million. Commercial operation is planned for April 2016.