Sempra Energy Unit Awarded South Texas-Tuxpan Natural Gas Pipeline Contract In Mexico
Jun 13, 2016
SAN DIEGO, June 13, 2016 /PRNewswire/ -- Sempra Energy (NYSE: SRE) announced that Infraestructura Marina del Golfo (IMG), a joint venture between its Mexican unit Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) (BMV: IENOVA) and TransCanada Corporation, has been awarded a transportation contract by the Comision Federal de Electricidad (CFE) to build, own and operate an approximately 497-mile (800 kilometer), $2.1 billion natural gas pipeline in Mexico.
The 42-inch diameter South Texas-Tuxpan pipeline will have a capacity of 2.6 billion cubic feet per day and an anticipated in-service date of late 2018. The pipeline will transport natural gas from a point near Brownsville, Texas, to Tuxpan, Veracruz, and it will provide natural gas to new and existing CFE power plants that currently use fuel oil. The project is contracted by CFE under a 25-year capacity contract denominated in U.S. dollars.
IMG will be responsible for implementing the project, including permitting, acquiring land and rights of way, engineering, procurement, construction, financing, operation and maintenance. IEnova holds a 40 percent ownership of IMG's joint venture.
"We are pleased with the results of the tender and look forward to continue to grow our presence in Mexico while helping the country meet its energy demand with new safe and reliable services," said Mark Snell, president of Sempra Energy.
IEnova develops, builds and operates energy infrastructure in Mexico. As of 2015, the company invested more than US$4 billion in operating assets and projects under construction in Mexico and is one of the largest private energy companies in the country. IEnova is the first energy infrastructure company to be listed in the Mexican Stock Exchange.
Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2015 revenues of more than $10 billion. The Sempra Energy companies' 17,000 employees serve more than 32 million consumers worldwide.
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Sempra International, LLC, Sempra U.S. Gas & Power, LLC, and Sempra Partners, LP, are not the same companies as the California utilities, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra International, LLC, Sempra U.S. Gas & Power, LLC, and Sempra Partners, LP, are not regulated by the California Public Utilities Commission. Sempra International's underlying entities include Sempra Mexico and Sempra South American Utilities. Sempra U.S. Gas & Power's underlying entities include Sempra Renewables and Sempra Natural Gas.
SOURCE Sempra Energy
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