ATCO and its partner Grupo Hermes S.A. de C.V. have been selected by an affiliate of Mexico’s state-owned petroleum company Pemex, called PMX Cogeneracion S.A.P.I de C.V., to begin the project development and approval process for a gas-fired cogeneration plant at the Miguel Hidalgo refinery near the town of Tula in the state of Hidalgo, Mexico.
Initial estimates value the capital cost of the proposed project at $820m, of which ATCO will be responsible for approximately half of the required investment. Partnership approval is expected in 2015, with a commercial operation date in the second half of 2017.
“It is a great honour for ATCO and our partner Grupo Hermes to be selected by Pemex for this important project,” said Nancy Southern, Chair, President & Chief Executive Officer, ATCO Group, in an Oct. 27 statement. “ATCO has made a significant long-term commitment to the people and industries of Mexico and we look forward to creating sustainable value and benefits for our partners and the communities where we have the privilege to operate.”
The Tula cogeneration plant is expected to have a generating capacity of 638 MW of electricity and produce 1,247 tonnes of steam per hour.
This announcement marks the second major project awarded to ATCO within the past month. On Oct. 9, ATCO announced that it had been awarded a contract by the Comisión Federal de Electricidad to design, build, operate and maintain a natural gas pipeline also near Tula.
Grupo Hermes is a Mexican industrial conglomerate operating in various industries, including manufacturing, construction, infrastructure and energy.
ATCO is an experienced builder, owner and operator of independent power plants.