Mexico’s CFE plans to expand its offshore natural gas pipeline for $ 4.5 billion

Mexican state energy utility Comisión Federal de Electricidad (CFE) announced on Thursday that it is developing a $ 4.5 billion project with the Sener Department of Energy and the Sistrangas pipeline network operator Centro Nacional de Control del Gas Natural (Cenagas) to expand natural gas access on the Yucatán Peninsula.

A CFE spokesman said NGIs Mexico GPI that the project in question is an expansion of the 2.6 billion cubic feet per day Sur de Texas-Tuxpan offshore pipeline jointly owned by TC Energy Corp. and Infraestructura Energética Nova, alias IEnova.

CFE announced in August that it had signed a Memorandum of Understanding (MOU) with TC to develop the expansion project and seek solutions to complete the deadlocked Tula-Villa de Reyes and Tuxpan-Tula pipelines. A TC spokesman confirmed the content of the MOU to NGI at the time, although it remained unclear until Monday whether TC would actually participate in the expansion.

The project will enable the delivery of an average of 120-400 million cubic feet per day to the natural gas-hungry peninsula, according to CFE.

“This will allow CFE to move natural gas from the catchment areas of the southern United States to the Yucatán Peninsula, support existing and new power plants in Mérida and Valladolid, and the new trans-isthmus pipeline, and provide redundancy and operational flexibility for the Dos Bocas refinery in Tabasco, ”said CFE.

The project will contribute to economic and social development in southeastern Mexico, “with advantages in terms of electricity tariffs and access to natural gas for the population,” added the company.

CFE also highlighted a 20 million cubic foot per day gas supply contract with New Fortress Energy Inc. for two CFE power plants in Baja California Sur, isolated from Mexico’s major pipeline networks. New Fortress will supply imported gas to its Pichilingue regasification terminal, which went into commercial operation in July.

New Fortress supplies gas to CT Punta Prieta and CCI Baja California Sur power plants, CFE said, highlighting that both can run on diesel or natural gas.

The supply agreement with New Fortress enables CFE to replace diesel with cleaner burning natural gas and “reduce the impact of pollutant emissions in the zone”.

Wärtsilä delivers 600 MW

The technology group Wärtsilä Corp. is reported in similar news. based in Helsinki, Finland, will supply two dual-fuel thermal power plants with a combined capacity of 600 MW to CFE.

The projects include the 400 MW Mexicali Oriente power plant, which is slated for the Mexican state of Baja California, and the 200 MW Parque Industrial power plant in the state of Sonora, Wärtsilä said.

Wärtsilä plans to complete the projects in phases in 2022 and 2023.

The projects together represent the largest engineering, procurement and construction contract ever awarded to Wärtsilä, according to the company.

The Mexicali Oriente plant will run on 24 Wärtsilä 50DF dual-fuel engines, while the Parque Industrial plant will have 22 Wärtsilä 34DF dual-fuel engines. The engines run primarily on natural gas and can use liquid fuel as a backup if necessary, the company said.

“During the summer months, the systems are operated continuously and cover the high electricity demand in the region” when temperatures can rise to over 50 degrees Celsius (122 F).

To date, Wärtsilä has delivered over 500 MW of generation capacity in Mexico.

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