LATEST MEXICO INFRASTRUCTURE NEWS:
Mexico to tender $3.3bn of gas, power projects
CFE chief executive Enrique Ochoa Reza detailed the firm's strategy to increase efficiency. "The first step is to keep expanding our gas pipeline system, the second is to restructure plants that currently use fuel oil so they can use natural gas and finally, to carry out tenders for the construction and operation of new combined-cycle power plants."
Among the main new projects is the 550mn ft³/d (15.4mn m3/d) Samalayuca-Sásabe gas pipeline that will run 528km from the Waha hub in Texas to the planned San Isidro-Samalayuca pipeline, in the northern border state of Chihuahua, and the Sásabe-Guaymas pipeline, currently under construction. The new pipeline will require an estimated $916mn. The CFE issued a tender to build San Isidro-Samalayuca last week.
The 250km Colombia-Escobedo pipeline departing from Webb, Texas, will deliver US gas to the northern state of Nuevo Leon, to supply the northern and northeastern regions of Mexico. The line will have 500mn ft³/d of capacity and cost is estimated at $450mn.
Banco Interacciones is prepared for the Burgos Basin infrastructure development
“Today we have the capacity to strategically support the business opportunities that will drive the economic growth for Northern Mexico. We are also in a position to apply the lessons learned from the Eagle Ford experience in South Texas”, Gerardo Salazar Viezca, the General Director for the bank said during a conference last week in Houston. Salazar said that a cross border master plan is needed to promote and drive the basic infrastructure needs for the region. These basic needs include hotels, restaurants, housing, repair garages, and additional basic support that most developed cities are accustomed to having in place.
GDF SUEZ constructing the Ramones II South pipeline, a project to reinforce energy security in Mexico
GDF SUEZ, together with its partner PEMEX, announced the start of construction on the Ramones Phase II South pipeline (Ramones II South), a segment of the Ramones natural gas pipeline system, which is one of the largest energy infrastructure projects in Mexico’s history, extending from the Texas border to central Mexico. Established as a joint venture1 between PEMEX and GDF SUEZ, Ramones II South will span 291 kilometers from San Luis Potosi to Apaseo El Alto, Guanajuato, and represents a total estimated investment cost of USD 1 billion. The Ramones II South pipeline will have the capacity to deliver 1.4 billion cubic feet per day of natural gas.
Investment analysts positive on Mexico growth
The new provision is “symbolic” more than anything else, Fernando Losada, a Latin America economist at AllianceBernstein LP, said in a telephone interview from New York. “It’s very hard to envision a scenario in which Mexico is going to have a problem down the road.”
Economic growth in Mexico, which sends about 80 percent of its exports to the U.S., will accelerate to about 5 percent starting in 2016 as President Enrique Pena Nieto’s changes to oil and telecommunications laws kick in, according to government forecasts.
“Our positive outlook on Mexico is predicated on the raising of potential growth,” Fidelity’s Hagerty said. “But also just looking at its trade and financial ties to the U.S. and putting it in the context with our outlook for global growth for the U.S., Mexico is on the verge here of being able to benefit.”