Report: Mexico’s CFE readies awards for new power plants

Reuters reported July 21 that Mexico-owned utility CFE has said it plans to offer $2.8bn in natural gas and electricity infrastructure project contracts by the end of this year.

The projects include two combined-cycle power plants and two natural gas pipelines, as well as an electricity transmission project, all located near Mexico’s northern border with the United States. The scheme is designed to boost natural gas imports from the U.S. and over time help lower electricity rates via cheaper inputs and more modern power infrastructure, Reuters noted.

CFE Chief Executive Enrique Ochoa said the contracts will be open to private firms in international public tenders and the projects are expected to enter into operation by 2017.

  • The combined-cycle, 928-MW Norte III power plant will be located about 19 miles south of the border city of Ciudad Juarez and will cost about $1bn. The winning bid will be announced in December.
  • The combined-cycle Guaymas II power plant located in northwestern Sonora state will cost about $822m and feature installed capacity of 714 MW. The winning bid will be announced in December.
  • The 263-mile Encino-La Laguna natural gas pipeline will transport gas from southern Texas and supply northern Chihuahua and Durango states. It will cost about $650m and the winning bid will be announced in October.
  • The Huasteca-Monterrey transmission line will cover 268 miles, crossing northern Tamaulipas and Nuevo Leon states and will include two substations. It would cost about $257m, with the winning bid announced in November.
  • The 14-mile San Isidro-Samalayuca natural gas pipeline will transport gas from southern Texas to the new Norte III power plant in Chihuahua state. It will cost about $50m and the winning bid will be announced in December.
About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.