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In 2013, Mexico adopted large-scale reforms across multiple sectors, including energy. These reforms represent historic change in Mexico and will offer new opportunities for U.S. companies. Apart from growth in trade, greater competition is anticipated in the oil and electric energy sub-sectors, directly resulting from the end of Mexican Petroleum’s (Petróleos Mexicanos, or PEMEX) and the Federal Electricity Commission’s (CFE) monopolies in the oil and gas and electricity markets.

In the oil sub-sector, PEMEX will continue to make large investments in oil exploration and production, in order to address falling production levels. Foreign companies will be allowed to participate in exploration and extraction projects of the country’s largely unexplored crude territory. U.S. companies will be able to develop a stake in mid and downstream activities, including refining, transportation, pipelines, storage, and gas stations.

Mexico’s recent energy reform created a new natural gas agency called the National Center for Control of Natural Gas (Centro Nacional de Control del Gas Natural-CENEGAS). As of September 2015, PEMEX transferred to CENEGAS over 8,900 kilometers of natural gas pipelines. CENEGAS will now coordinate with the National Regulatory Commission (CRE) on all of the new permits requested by private companies that participate in and win international or domestic tenders.

As for the electrical power and renewable energy sub-sectors, there will be an emphasis on diversifying the sources of power generation by increasing the use of combined-cycle equipment, modernizing outdated electricity plants with the installation of clean and efficient technologies, and increasing the supply of power generation sources, primarily natural gas. Mexico’s renewable energy market is expected to be strengthened, and according to Mexico’s Ministry of Energy (SENER), Mexico will invest $300 billion in clean energy infrastructure over the next four years to increase clean energy generation to 32.9 percent of the country’s total. Furthermore, the Mexican government has recognized the need to expand the electricity network to include those areas of the country that are underserved or where the supply of electricity has been difficult and costly. To accomplish the electricity network expansion, meant to serve 130 million inhabitants by 2027, energy efficiency and renewable technologies will most likely be utilized.

If you are interested in learning about opportunities for U.S. companies in this area, the U.S. Commercial Service can help. Please review the priority project overviews below and submit a request for more information using the appropriate link!



Round One Production Sharing Contracts (Phase 3)

Project Type

Onshore Oil and Gas Production

Location:

States of Nuevo Leon, Tamaulipas and Chiapas, Gulf of Mexico

Projected Cost:

US $623 million

Timeline:

Awards expected December 15, 2015

Project Sponsor(s):

National Hydrocarbons Commission (CNH)

The third phase of Mexico’s Round One will offer companies the opportunity to bid on 25 terrestrial fields under a Licensing Agreement contract model.

This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Francisco Ceron francisco.ceron@trade.gov , Trade Specialist of the U.S. Commercial Service, to learn more.

Round One Production Sharing Contracts (Phase 4)

Project Type

Exploration in Deep Waters

Location:

States of Tamaulipas, Veracruz, Tabasco, and Campeche

Projected Cost:

US $200 million

Timeline:

Tenders during third quarter of 2016

Project Sponsor(s):

National Hydrocarbons Commission (CNH)

The fourth phase of Mexico’s Round One will offer companies the opportunity to bid on 10 deep water production blocks.

This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Francisco Ceron francisco.ceron@trade.gov , Trade Specialist of the U.S. Commercial Service, to learn more.

Villa de Reyes-Aguascalientes-Guadalajara Gas Pipeline

Project Type

333 Kilometers Natural Gas Pipeline

Location:

States of San Luis Potosí, Aguascalientes, and Jalisco

Projected Cost:

US $660 million

Timeline:

Tender to be launched January 27, 2016. Project to be in operation 2018.

Project Sponsor(s):

CENAGAS

The project is for 335 kilometers, 42 inches diameter pipeline. The tender is a build and operate for 20 years and transfer project (BOT) project. Companies that are awarded the project should request a CRE permit with the right of way and environmental impact permits.

This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Francisco Ceron francisco.ceron@trade.gov , Trade Specialist of the U.S. Commercial Service, to learn more.

Tula – Villa de Reyes Gas Pipeline

Project Type

279 kilometers Natural Gas Pipeline

Location:

States of Aguascalientes, Hidalgo, Jaisco and San Luis Potosí

Projected Cost:

US $650 million

Timeline:

Tender to be launched January 27, 2016. Project to be in operation 2017.

Project Sponsor(s):

CENAGAS

The project is for 279 kilometers/42 inches diameter pipeline.The tender is a build and operate for 20 years and transfer (BOT) project. Companies that are awarded the project should request a CRE permit with the right of way and environmental impact permits.

This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Francisco Ceron francisco.ceron@trade.gov , Trade Specialist of the U.S. Commercial Service, to learn more.

Tuxpan-Tula Gas Pipeline

Project Type

237 kilometers Natural Gas Pipeline

Location:

States of Hidalgo and Veracruz

Projected Cost:

US $600 million

Timeline:

Tender to be launched December 27,2015

Project to be in operation 2017

Project Sponsor(s):

CENAGAS

The project is for 237 kilometers/42 inches diameters pipeline. The tender is a build and operate for 20 years and transfer (BOT) project. Companies that are awarded the project should request a CRE permit with the right of way and environmental impact authorizations.

This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Francisco Ceron francisco.ceron@trade.gov , Trade Specialist of the U.S. Commercial Service, to learn more.

La Laguna – Centro Gas Pipeline

Project Type

601 kilometers Natural Gas Pipeline

Location:

States of Aguascalientes and Durango

Projected Cost:

US $ 1.2 billion

Timeline:

Tender to be launched December 29,2015

Project to be in operation 2018

Project Sponsor(s):

CENAGAS

The project is for 601 kilometers/42 inches diameters pipeline. The tender is a build and operate for 20 years and transfer (BOT) project. Companies that are awarded the project should request a CRE permit with the right of way and environmental impact permits.

This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Francisco Ceron francisco.ceron@trade.gov , Trade Specialist of the U.S. Commercial Service, to learn more.

Sur de Texas – Tuxpan Gas Pipeline

Project Type

325 kilometers Natural Gas Pipeline

Location:

States of Tamaulipas and Veracruz

Projected Cost:

US $650 million

Timeline:

Tender to be launched March 2018. Project to be in operation 2021

Project Sponsor(s):

CENAGAS

The project is for 325 kilometers/42 inches diameter pipeline. The tender is a build and operate for 20 years and transfer (BOT) project. Companies that are awarded the project should request a CRE permit with the right of way and environmental impact permits.

This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Francisco Ceron francisco.ceron@trade.gov , Trade Specialist of the U.S. Commercial Service, to learn more.

Natural Gas Supply to Baja California Sur

Project Type

Natural gas supply to new and existing power generation plants which will be converted to use natural gas.

Location:

State of Baja California Sur

Projected Cost:

US $600 million

Timeline:

February 15, 2016

Project Sponsor(s):

CENAGAS

This project will supply natural gas, through open technology, to CFE’s power generation units in Baja California Sur.

This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Francisco Ceron francisco.ceron@trade.gov , Trade Specialist of the U.S. Commercial Service, to learn more.

Hermosillo Gas Pipeline Branch

Project Type

Gas Pipeline Branch

Location:

State of Sonora

Projected Cost:

US $68 million

Timeline:

May 15, 2016

Project Sponsor(s):

CENAGAS


The project is comprised of the engineering, procurement, acquisition of real state rights, permits and government approvals, funding, construction, operation and maintenance of a pipeline with capacity of 100 million standard cubic feet per day (MMSCFD). The pipeline will have a length of 48 kilometers (km) and 16-inch diameter.This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Francisco Ceron francisco.ceron@trade.gov , Trade Specialist of the U.S. Commercial Service, to learn more.

La Laguna – Aguascalientes Gas Pipeline

Project Type

Gas Pipeline

Location:

States of Durango, Zacatecas, and Aguascalientes

Projected Cost:

US $1 billion

Timeline:

January 2016

Project Sponsor(s):

CENAGAS

The project is comprised of the engineering, procurement, acquisition of real state rights, permits and, governmental approvals, funding, construction, operation and maintenance of a pipeline that will have a length of 600 kilometers (km) and a 42-inch diameter.

This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Francisco Ceron francisco.ceron@trade.gov , Trade Specialist of the U.S. Commercial Service, to learn more.

Empalme Gas Pipeline Branch

Project Type

Gas Pipeline Branch

Location:

State of Sonora

Projected Cost:

US $35 million

Timeline:

February, 2016

Project Sponsor(s):

CENAGAS

The project is comprised of the engineering, procurement, acquisition of real state rights, permits and governmental approvals, funding, construction, operation and maintenance of a pipeline with capacity of 226 million standard cubic feet per day (MMSCFD). The pipeline will have a length of 20 kilometers (km) and both 20 and 16-inch diameter pipes.

This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Francisco Ceron francisco.ceron@trade.gov , Trade Specialist of the U.S. Commercial Service, to learn more.

San Isidro-Samalayuca Gas Pipeline

Project Type

23 kilometers Natural Gas Pipeline

Location:

States of Chihuahua

Projected Cost:

US $ 50 million

Timeline:

Tender to be launched January 27, 2016.

Project to be in operation 2018.

Project Sponsor(s):

CENAGAS

The project is for 23 kilometers/42 inches diameters pipeline. The tender is a build and operate for 20 years and transfer (BOT) project. Companies that are awarded the project should request a CRE permit with the right of way and environmental impact permits.

This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Francisco Ceron francisco.ceron@trade.gov , Trade Specialist of the U.S. Commercial Service, to learn more.

Samalayuca –Sasabeo Gas Pipeline

Project Type

558 kilometers Natural Gas Pipeline

Location:

States of Chihuahua and Sonora

Projected Cost:

US $ 200 Million

Timeline:

Tender to be launched January,2016

Project to be in operation 2017

Project Sponsor(s):

CENAGAS

The project is for 558 kilometers/42 inches diameters pipeline. The tender is a build and operate for 20 years and transfer (BOT) project. Companies that are awarded the project should request a CRE permit with the right of way and environmental impact permits.

This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Francisco Ceron francisco.ceron@trade.gov , Trade Specialist of the U.S. Commercial Service, to learn more.

Colombia –Escobedo Gas Pipeline

Project Type

254 kilometers Natural Gas Pipeline

Location:

States of Nuevo Leon

Projected Cost:

US $ 60 Million

Timeline:

Tender to be launched January,2016

Project to be in operation 2017

Project Sponsor(s):

CENAGAS

The project is for 254 kilometers/42 inches diameters pipeline. The tender is a build and operate for 20 years and transfer (BOT) project. Companies that are awarded the project should request a CRE permit with the right of way and environmental impact permits.

This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Francisco Ceron francisco.ceron@trade.gov , Trade Specialist of the U.S. Commercial Service, to learn more.

Lazaro Cardenas–Acapulco Gas Pipeline

Project Type

331 kilometers Natural Gas Pipeline

Location:

States of Michoacan and Guerrera

Projected Cost:

US $ 170 Million

Timeline:

Tender to be launched December 29, 2015 Project to be in operation 2018

Project Sponsor(s):

CENAGAS

The project is for 331 kilometers/42 inches diameters pipeline. The tender is a build and operate for 20 years and transfer (BOT) project. Companies that are awarded the project should request a CRE permit with the right of way and environmental impact permits.

This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Francisco Ceron francisco.ceron@trade.gov , Trade Specialist of the U.S. Commercial Service, to learn more.

Jaltipan-Lazaro Carden Gas Pipeline

Project Type

247 kilometers Natural Gas Pipeline

Location:

States of Oaxaca and Veracruz

Projected Cost:

US $ 230 Million

Timeline:

Tender to be launched January,2016

Project to be in operation 2017

Project Sponsor(s):

CENAGAS

The project is for 558 kilometers/42 inches diameters pipeline. The tender is a build and operate for 20 years and transfer (BOT) project. Companies that are awarded the project should request a CRE permit with the right of way and environmental impact permits.

This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Francisco Ceron francisco.ceron@trade.gov , Trade Specialist of the U.S. Commercial Service, to learn more.

Salina Cruz-Tapachula Gas Pipeline

Project Type

440 kilometers Natural Gas Pipeline

Location:

States of Chiapas and Oaxaca

Projected Cost:

US $ 730Million

Timeline:

Tender to be launched January,2016

Project to be in operation 2018

Project Sponsor(s):

CENAGAS

The project is for 440 kilometers/42 inches diameters pipeline. The tender is a build and operate for 20 years and transfer (BOT) project. Companies that are awarded the project should request a CRE permit with the right of way and environmental impact permits.

This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Francisco Ceron francisco.ceron@trade.gov , Trade Specialist of the U.S. Commercial Service, to learn more.

Los Ramones-Cempoala Gas Pipeline

Project Type

885kilometers Natural Gas Pipeline

Location:

States of Tamaulipas and Veracruz

Projected Cost:

US $ 900 Million

Timeline:

Tender to be launched March,2016

Project to be in operation 2018

Project Sponsor(s):

CENAGAS

The project is for 885 kilometers/42 inches diameters pipeline. The tender is a build and operate for 20 years and transfer (BOT) project. Companies that are awarded the project should request a CRE permit with the right of way and environmental impact permits.

This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Francisco Ceron francisco.ceron@trade.gov , Trade Specialist of the U.S. Commercial Service, to learn more.

Nuclear Energy – Laguna Verde Expansion

Project Type

Laguna Verde Nuclear Plant Expansion Reactors 3 and 4

Location:

State of Veracruz, Gulf of Mexico

Projected Cost:

US $8 billion

Timeline:

Tenders to be published March 2017

Project Sponsor(s):

The Federal Electricity Commission (CFE)

According to SENER’s Energy Plan 2015-2025, a tender for two new reactors will be announced in 2017 with an estimated investment of US $8 billion in which 80 percent will be in equipment and 20 percent engineering and construction services.

This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Francisco Ceron francisco.ceron@trade.gov , Trade Specialist of the U.S. Commercial Service, to learn more.

Central de Ciclo Combinado Noroeste (Topolobampo II)

Project Type

Natural Gas Fired Power Plant

Location:

State of Sinaloa

Projected Cost:

US $1.084 billion

Timeline:

Bid Due Date of May 11, 2015; Operational in 2018

Project Sponsor(s):

Federal Electric Commission (CFE)

Energy demand in western Mexico is expected to grow 4.8 percent annually. To meet this demand, CFE plans to build this combined cycle plant in the municipality of Ahome, Sinaloa. This project will consist of a combined cycle power plant with a capacity of 820 MW. The project will be tendered in the form of an Independent Power Producer (IPP).

This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Claudia Salgado, claudia.salgado@trade.gov Trade Specialist of the U.S. Commercial Service, to learn more.


Central de Ciclo Combinado Noreste (Topolobampo III)

Project Type

Natural Gas Fired Power Plant

Location:

State of Sinaloa

Projected Cost:

US $1.098 billion

Timeline:

Bid Due Date of July 15, 2015; Operational in 2018

Project Sponsor(s):

Federal Electric Commission (CFE)

Topolobampo III is a similar project – to construct combined cycle natural gas generation capacity in the vicinity of Topolobampo II – adding capacity of 680 MW to the existing 820 MW. In 2015-16, another US $57 million will be invested in the existing plant infrastructure to enable the addition of the new natural gas generation capacity, including burners, and improvements to the existing steam turbines and plant control systems. The associated transmission project for Topolobampo III will include construction of three electrical substations and three transmission lines for a total cost of US $129 million.

This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Claudia Salgado, claudia.salgado@trade.gov Trade Specialist of the U.S. Commercial Service, to learn more.

Combined Cycle Plant Empalme I

Project Type

Natural Gas Fired Power Plant

Location:

State of Sinaloa

Projected Cost:

US $738 million

Timeline:

Awarded March 31, 2015; Operational in 2018

Project Sponsor(s):

Federal Electric Commission (CFE)

Empalme I is designed to meet the growing electricity demand in northwestern Mexico, which is increasing at an annual rate of 3.6 percent. Once constructed, the plant will have a capacity of 704 MW. The tender was awarded to a consortium of Ingeniería y Sistemas, S.A. de C.V.; Sener Ingeniería y Sistemas, S.A.; IEPI México, S.A. de C.V.; and OHL Industrial S.L. Opportunities exist to sell complementary U.S. equipment and products for this project.

This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Claudia Salgado, claudia.salgado@trade.gov Trade Specialist of the U.S. Commercial Service, to learn more.

Baja California Sur VI Internal Combustion Power Plant (Dual Fuel)

Project Type

Combustion Power Plant

Location:

State of Baja California Sur

Projected Cost:

US $105 million

Timeline:

January, 2016

Project Sponsor(s):

Federal Electricity Commission (CFE)

The project consists of a lump sum price contract, which is comprised of the engineering, design, supply of all equipment and materials, spare parts and special tools, testing and commissioning. The power plant will consist of one (or up to three) dual fuel internal combustion system(s) . The engines will be fueled by: (i) 100% heavy fuel oil; OR (ii) 90% natural gas and 10% diesel. It will also include all the necessary ancillary systems for its operation.


This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Claudia Salgado, claudia.salgado@trade.gov Trade Specialist of the U.S. Commercial Service, to learn more.

San Luis Potosí Combined Cycle Power Plant

Project Type

Combined Cycle Power

Location:

State of San Luis Potosi

Projected Cost:

US $864 million

Timeline:

May, 2016

Project Sponsor(s):

Federal Electricity Commission (CFE)

The project consists of a lump sum price contract, which is comprised of the engineering, design, supply of all equipment and materials, spare parts and special tools, testing and commissioning. This combined cycle system may have any of the following configurations: (i) a module comprising three gas turbines, three heat recoveries and a steam turbine ii) a module comprising two gas turbines, two heat recoveries and a steam turbine or iii) two modules, each comprising two gas turbines, two heat recoveries and a steam turbine.

This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Claudia Salgado, claudia.salgado@trade.gov Trade Specialist of the U.S. Commercial Service, to learn more.

Southeastern Wind Power Centers II and III

Project Type

Wind Power Plant

Location:

State of Oaxaca

Projected Cost:

US $1.079 million

Timeline:

Fall/Winter of 2015 – March 2016

Project Sponsor(s):

Federal Electric Commission (CFE)

It consists of the design, programming, construction and commissioning of this wind power plant. This project will reduce CO2 emissions to the atmosphere. This project consists of two modules with a total capacity of approximately 585 MW, and will be bid as a turnkey project.

This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Claudia Salgado, claudia.salgado@trade.gov Trade Specialist of the U.S. Commercial Service, to learn more.

Southeastern Wind Power Centers III-VI

Project Type

Wind Power Generation and Transmission

Location:

Oaxaca State

Projected Cost:

US $2.8 billion

Timeline:

2015-2020

Project Sponsor(s):

Energy Regulatory Commission (CRE) and the Federal Electric Commission (CFE)

CFE is conducting pre-investment studies for the development of 4 new sites in Oaxaca, with 14 wind power generation plants of 30 MW of capacity each, totaling 1,200 gross MW of planned installed capacity. Generation capacity will be developed by private companies as IPPs, providing energy to the grid for public use, and as self-supply, dedicated to providing power to specific private customers. The first of the new plants to be constructed are expected to begin operations between 2017 and 2018.

This project was awarded in 2016. Nonetheless, the USCS identifies further business opportunities with selected companies linked to this project. Please contact Claudia Salgado, claudia.salgado@trade.gov Trade Specialist of the U.S. Commercial Service, to learn more.

Additional Resources

Secretariat of Energy (SENER) http://www.energia.gob.mx

Energy Regulatory Commission (CRE) http://www.cre.gob.mx

Mexican Petroleum (PEMEX) http://www.pemex.com

Mexican Petroleum (PEMEX english) http://www.pemex.com/en/Paginas/default.aspx

College of Petroleum Engineers of Mexico (CIPM) http://www.cipm.org.mx

National Infrastructure Trust http://www.fonadin.gob.mx

Mexican Association of Petroleum Service Companies http://www.amespac.org.mx

Federal Electricity Commission (CFE) http://www.cfe.gob.mx

Federal Electricity Commission (CFE english) http://www.cfe.gob.mx/ingles/Pages/Home.aspx

Fund for Energy Saving (FIDE) http://www.fide.gob.mx

Mexican Association for Wind Energy (AMDEE) http://www.amdee.org

Mexican Association for Wind Energy (AMDEE) english http://www.amdee.org/home_amdee_2014_en

National Association for Solar Energy (ANES) http://www.anes.org

National Commission for the Efficient Use of Energy http://www.conuee.gob.mx

National Commission for the Efficient Use of Energy (english) http://www.conuee.gob.mx/wb/Conuee/english


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