Mexico’s CFE Launches 24 Energy Infrastructure Tenders worth US$10bn

Mexico’s state utility CFE, has launched tenders for 24 electricity and natural gas infrastructure projects worth US$9.8bn, including eight pipelines, one combined cycle and one geothermal power station, two wind farms and various transmission projects.

The projects will add 1,442MW to the country’s electricity generation capacity; 2,385km to its natural gas pipeline network; 122km to the transmission network, and 2,962km to the distribution grid, CFE chief executive Enrique Ochoa Reza (pictured) announced at a press conference.

Pipelines (Natural Gas)

Gasoducto Tula – Villa de Reyes

The length of the pipeline will be 280 km with 36 inches in diameter. It will interface with the Tuxpan pipeline – Tula, currently under bid and Villa de Reyes – Aguascalientes – Guadalajara, which is already tendered.

It will have the capacity to transport 550 million cubic feet per day (MMSCFD) of natural gas and will provide fuel to the centre and west regions of the country.

The estimated investment is $ 420 million. The publication of the prebase is scheduled for June 2015 and commercial operation is scheduled for December 2017.

Pipeline Villa de Reyes – Aguascalientes – Guadalajara

The length of the pipeline will be 355 km with 42 inches in diameter. It will interface with pipelines Tula – Villa de Reyes and La Laguna – Aguascalientes, which are already tendered. It will pass through the states of San Luis Potosi, Aguascalientes and Jalisco.

The pipeline will have the capacity to transport 1,000 million cubic feet of natural gas.

The estimated investment is USD$555 million. The publication of the prebase is scheduled for July 2015 and commercial operation is scheduled for December 2017.

South Texas pipeline – Tuxpan (Marino)

It will transport natural gas from an underwater route in the Gulf of Mexico, specifically from the south of Texas, USA, to Tuxpan, Veracruz. It will have an approximate length of 800 km with 42 inches in diameter. It will interface with the Nueces pipeline – Brownsville, that is already tendered, and the pipeline Tuxpan – Tula, currently under tender.

It will have the capacity to transport 2,600 million cubic feet of natural gas and will address the requirements of this fuel in the East, Central and West Regions of the country.

The estimated investment is USD$3.1 Billion. The publication of the prebase is scheduled for July 2015 and commercial operation is scheduled for June 2018.

Nuts pipeline – Brownsville

The Pipeline will have an approximate length of 250 km and 42 inches in diameter. It will provide natural gas to pipeline Marino.

The pipeline will have the capacity to transport 2,600 million cubic feet of natural gas and will address the requirements of this fuel in the East, Central and West Regions of the country.

Being a project that will be located in the United States, it will be tendered in accordance with the rules of that country, through a RFP (Request for Proposal).

The estimated investment will be USD$1.550 Billion. Publication of the RFP is planned for July 2015 and commercial operation is scheduled for June 2018.

Pipeline La Laguna – Aguascalientes

The pipeline will have a length of 600 km and will be 42 inches in diameter. It will interface with pipelines El Encino – La Laguna, currently under construction, and Villa de Reyes – Aguascalientes – Guadalajara, that is being tendered. It will pass through the states of Durango, Zacatecas and Aguascalientes.

It will have the capacity to transport 1,150 million cubic feet of natural gas and will address the requirements of this fuel in the centre and west Regions of the country.

The estimated investment is USD$1 billion. The publication of the prebases is scheduled for July 2015 and commercial operation is scheduled for December 2017.

Ramal Empalme

The pipeline will have a length of 20 km and be 24 inches in diameter. It will transport 236 million cubic feet of natural gas from the pipeline Sásabe – Guaymas Guaymas – El Oro, the combined cycle plants Empalme Empalme I and II, in the state of Sonora.

The estimated investment is USD$35 million. The publication of the prebases is scheduled for August 2015 and commercial operation is scheduled for April 2017.

Branch Hermosillo

The pipeline will have a length of 48 km with 16 inches in diameter. It will transport 100 million cubic feet of natural gas from the pipeline Sásabe – Guaymas to Hermosillo combined cycle plant in the state of Sonora.

The estimated investment is USD$68 million. The publication of the prebases is scheduled for August 2015 and commercial operation is scheduled for June 2017.

Ramal Topolobampo

The pipeline will have a length of 32 km and will be 24 inches in diameter. It will transport 248 million cubic feet of natural gas from the pipeline El Encino – Topolobampo, to combined cycle plants Northwest (Topolobampo II) and III Topolobampo in Sinaloa state.

The estimated investment is USD$55 million. The publication of the prebases is scheduled for October 2015 and commercial operation is scheduled for March 2018.

Electrical Generation

Central Geothermal Los Azufres III, Phase II

The project is located in the municipalities of Hidalgo and Zinapécuaro, Michoacan.

The plant will have a capacity of 25 MW. The publication of the prebase was held on 19 May. The bases will be published in July 2015 and commercial operation is scheduled for June 2018.

The estimated investment is USD$63 million. Transparencia Mexicana will participate in this process as a Social Witness appointed by the Ministry of Public Administration.

Central Internal Combustion (Dual) Baja California Sur VI

The project is located in the municipality of La Paz, Baja California Sur. It is the construction of an internal combustion engine with oil and natural gas as the fuel. It will have a capacity of 42 MW (summer design condition).

The estimated investment is USD$105 million. The publication of the prebases is scheduled for July 2015 and commercial operation is scheduled for May 2018.

The Ministry of Civil Service shall appoint a Social Witness for this project.

Combined Cycle Power Plant San Luis Potosi

The project is located in the municipality of Villa de Reyes, San Luis Potosi. It will be a combined cycle plant. And have a capacity of 790 MW (summer design condition).

The estimated investment is USD$864 million. The publication of the prebases is scheduled for July 2015 and commercial operation is scheduled for April 2019.

The Ministry of Civil Service shall appoint a Social Witness for this project.

Central Wind East II and III

The project is located in the town of Ixtepec, Oaxaca. It will consist of two modules with a total capacity of 585 MW and will generate electricity from the wind.

The estimated investment is USD$1.79 billion. The publication of the prebases is scheduled for July 2015 and commercial operation is scheduled for December 2017.

The Ministry of Civil Service shall appoint a Social Witness for this project.

Transmission Lines and Electrical Substations

Northwest substations and Compensation 1902 (3rd phase)

This project is located in the state of Sinaloa. It includes five transmission lines 400 and 115 kilovolts (kV), with a total length of 74 km-C. It will include two substations with a capacity of 500 megavolt ampere (MVA) and eight feeders of 400 and 115 kV. The project will be implemented as a Financed Public Works.

The estimated investment is USD$35 million. The prebases and bases were published in April and May 2015 respectively. The start of commercial operation is scheduled for March 2017.

The CFE provides for the participation of a social witness in this process.

Transformation of the Northeast 1302

This project is located in the state of Coahuila. It includes five transmission lines of 115 kV with a total length of 25 km-C. It will include a substation with capacity of 500 MVA eight feeders in 400 and 115 kV.

The estimated investment is $ 37 million. The prebases and bases were published in April and May 2015 respectively. Commercial operation is scheduled for March 2017.

The CFE will include the participation of a social witness in the process.

Transmission and Transformation of Baja California (5th phase)

This project is located in the state of Baja California. It comprises two transmission lines 230 and 161 kV, and a total length of 23 km-C. It will include three substations with two 230 kV feeders and two 161 kV.

The estimated investment is USD$19 million. The publication of the prebases is scheduled for June 2015 and commercial operation is scheduled for January 2017.

The CFE will include the participation of a social witness in the process.

Electricity Distribution Projects

Substations and Distribution Lines 1920 (6th stage)

This project is located in the city of Hermosillo, Sonora. It consists of an electrical substation with a capacity of 30 MVA and 2 feeders in 115 kV and six in 13.8 kV.

The estimated investment is USD$6 million. The prebases and bases were published in May and June, respectively. Commercial operation is scheduled for October 2016.

The CFE will include the participation of a social witness in the process.

2021 Project: Reducing Energy Losses in Distribution (8 phases)

The project includes 44 works, divided into eight stages. It aims to reduce energy losses in Campeche, Chiapas, Mexico City, State of Mexico, Morelos, Quintana Roo, Sinaloa, Tabasco and Veracruz.

These eight phases include over 1 million meters; 36.612 distribution transformers and installing 2,962 Km-C line.

Reduction of Energy Losses in Distribution 2021 (1st phase)

The project includes the supply and installation of 16,048 meters, 957 distribution transformers and 37 Km-C. This phase will be installed in the state of Morelos.

The estimated investment is USD$14 million. The prebases and bases were published in May and June, respectively. The start of commercial operation is scheduled for October 2016.

The CFE provides for the participation of a social witness in this process.

Reduction of Energy Losses in Distribution 2021 (2nd phase)

The project includes the supply and installation of 5,727 meters. This phase will be installed in the state of Sinaloa.

The estimated investment is USD$5 million. The regulations will be published in June 2015 and commercial operation is scheduled for October 2016.

The CFE provides for the participation of a social witness in this process.

Reduction of Energy Losses in Distribution 2021 (3rd phase)

The project includes the supply and installation of 20.456 meters. This phase will be installed in the state of Veracruz.

The estimated investment is USD$8 million. The prebases and bases were published in April and June, respectively. The start of commercial operation is scheduled for September 2016.

The CFE provides for the participation of a social witness in this process.

Reduction of Energy Losses in Distribution 2021 (4th phase)

The project includes the supply and installation of 93.241 meters. This phase will be installed in the states of Campeche and Quintana Roo.

The estimated investment is USD$48 million. The prebases and bases are published in May and June, respectively. The start of commercial operation is scheduled for April 2017.

The CFE provides for the participation of a social witness in this process.

Reduction of Energy Losses in Distribution 2021 (5th phase)

The project includes the supply and installation of 378.054 meters, 12,687 distribution transformers and 1,214 km-C. This phase will be installed in the State of Mexico.

The estimated investment is 276 million. The publication of the prebases is scheduled for June 2015 and commercial operation is scheduled for June 2017.

Transparencia Mexicana will participate in this project as a Social Witness appointed by the Ministry of Public Administration.

Reduction of Energy Losses in Distribution 2021 (6th stage)

The project includes the supply and installation of 187.817 meters, 1,951 distribution transformers and 158 km-C. This phase will be installed in the states of Chiapas and Tabasco.

The estimated investment is USD$95 million. The publication of the bases will take place in July 2015 and commercial operation is scheduled for June 2017.

Of the amount, the Ministry of Public Service appointed a Social Witness for this project.

Reduction of Energy Losses in Distribution 2021 (7th stage)

The project includes the supply and installation of 336.935 meters, 19.338 distribution transformers and 1,269 km-C. This phase will be installed in the State of Mexico.

The estimated investment is $ 283 million. The publication of the bases will take place in July 2015 and commercial operation is scheduled for June 2017.

The Ministry of Public Service will appoint a Social Witness for this project.

Reduction of Energy Losses in Distribution 2021 (8th stage)

The project includes the supply and installation of 179.121 meters, 1,679 distribution transformers and 284 km-C. This phase will be installed in the State of Mexico and Mexico City.

The estimated investment is USD$116 million. The publication of the prebases will take place in July 2015 and commercial operation is scheduled for June 2017.

The Ministry of Public Service will appoint a Social Witness for this project.

The full list of projects can be seen here in Spanish.

About Harris Gomez Group: 

Harris Gómez Group is a Common law-Latin American legal and business advisory firm. In 2001, HGG was the first Australian law firm to have a local office in Latin America. The firm specialises in Common Law and Latin American cross-border issues in areas such as Mining and Energy, Corporate, Mergers and Acquisitions, Tax, Intellectual Property and Business Enterprises. With over 21 years of experience immersed in the respective legal and business cultures of Australia and Latin America, we create a seamless bridge between the two regions and have become an essential partner to many multinational enterprises.

If you need assistance with expanding your operations into Mexico or have an existing business, do not hesitate to contact us at hello@hgomezgroup.com

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