MEXICO CITY, July 21 Mexico's national power
company CFE said on Monday it will offer $2.8
billion in natural gas and electricity infrastructure project
contracts by the end of this year aimed at boosting economic
The projects include two combined-cycle power plants, two
natural gas pipelines as well as an electricity transmission
project, all located near Mexico's northern border with the
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.
Companies including IEnova, the Mexican unit of
U.S. energy firm Sempra Energy, South Korea's KEPCO
and France's GDF Suez are widely expected
to compete for the contracts.
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 Norte III power plant located about 19
miles (30 km) south of the border city of Ciudad Juarez will
cost about $1 billion. It will feature installed capacity of 928
megawatts, and the winning bid will be announced in December.
The combined-cycle Guaymas II power plant located in
northwestern Sonora state will cost about $822 million and
feature installed capacity of 714 megawatts. The winning bid
will be announced in December.
The 263 mile (423 km) Encino-La Laguna natural gas pipeline
will transport gas from southern Texas and supply northern
Chihuahua and Durango states. It will cost about $650 million
and the winning bid will be announced in October.
The Huasteca-Monterrey transmission line will cover 268
miles (432 km) crossing northern Tamaulipas and Nuevo Leon
states and include two substations. It is set to cost about $257
million, and the winning bid will be announced in November.
Meanwhile, the 14 mile (23 km) 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 $50
million and the winning bid will be announced in December.
(Reporting by David Alire Garcia; Editing by Richard Chang)