Published On: Sun, Jan 11th, 2015

Construction of Power Plant and Gas Pipeline set in motion by CFE

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CFE awards two big energy contracts.

Two big energy projects, electrical generation plant and natural gas pipeline, were announced this week by the Federal Electricity Commission (CFE).

The contract to build a US $1.5 billion 924 MW combined-cycle power plant in Ciudad Juárez was awarded to the Spanish firm, Abengoa. Called the Norte III project, the plant will produce enough electricity annually to supply 500,000 homes, reduce greenhouse-gas emissions and lower electrical costs for consumers.

It will take about 30 months to build; Abengoa will operate and maintain it for 25 years.

The pipeline, to be operational by March 2017 (Photo: Mexico Daily News)

The pipeline, to be operational by March 2017 (Photo: Mexico Daily News)

The firm is currently building a 640 MW plant in Morelos.

The 230-kilometer natural gas pipeline project was awarded to a consortium that includes Carlos Slim’s Carso Energy. Its winning bid of $767.66 million was well below the $1.36 billion that CFE had budgeted.

The pipeline, to be operational by March 2017, will be located between Waha and Presidio, Texas, and link up with the new Ojinaga-El Encino pipeline in Chihuahua. The projects will deliver natural gas to northern, central and western regions of Mexico.

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