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emphasis on diversifying the sources of power generation by increasing the use of combined-cycle equipment, modernizing outdated electricity plants with the installation of clean and efficient technologies, and increasing the supply of power generation sources, primarily natural gas.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)
Exploration in Deep Waters
States of Tamaulipas, Veracruz, Tabasco, and Campeche
US $200 million
Tenders during third quarter of 2016
The fourth phase of Mexico’s Round One will offer companies the opportunity to bid on 10 deep water production blocks.
Villa de Reyes-Aguascalientes-Guadalajara Gas Pipeline
333 Kilometers Natural Gas Pipeline
States of San Luis Potosí, Aguascalientes, and Jalisco
US $660 million
Tender to be launched January 27, 2016. Project to be in operation 2018.
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.
Tula – Villa de Reyes Gas Pipeline
279 kilometers Natural Gas Pipeline
States of Aguascalientes, Hidalgo, Jaisco and San Luis Potosí
US $650 million
Tender to be launched January 27, 2016. Project to be in operation 2017.
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.
Tuxpan-Tula Gas Pipeline
237 kilometers Natural Gas Pipeline
States of Hidalgo and Veracruz
US $600 million
Tender to be launched December 27,2015
Project to be in operation 2017
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.
La Laguna – Centro Gas Pipeline
601 kilometers Natural Gas Pipeline
States of Aguascalientes and Durango
US $ 1.2 billion
Tender to be launched December 29,2015
Project to be in operation 2018
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.
Sur de Texas – Tuxpan Gas Pipeline
325 kilometers Natural Gas Pipeline
States of Tamaulipas and Veracruz
Tender to be launched March 2018. Project to be in operation 2021
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.
Natural Gas Supply to Baja California Sur
Natural gas supply to new and existing power generation plants which will be converted to use natural gas.
State of Baja California Sur
February 15, 2016
This project will supply natural gas, through open technology, to CFE’s power generation units in Baja California Sur.
Hermosillo Gas Pipeline Branch
Gas Pipeline Branch
State of Sonora
US $68 million
May 15, 2016
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
Gas Pipeline
States of Durango, Zacatecas, and Aguascalientes
US $1 billion
January 2016
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.
Empalme Gas Pipeline Branch
US $35 million
February, 2016
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.
San Isidro-Samalayuca Gas Pipeline
23 kilometers Natural Gas Pipeline
States of Chihuahua
US $ 50 million
Tender to be launched January 27, 2016.
Project to be in operation 2018.
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.
Samalayuca –Sasabeo Gas Pipeline
558 kilometers Natural Gas Pipeline
States of Chihuahua and Sonora
US $ 200 Million
Tender to be launched January,2016
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.
Colombia –Escobedo Gas Pipeline
254 kilometers Natural Gas Pipeline
States of Nuevo Leon
US $ 60 Million
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.
Lazaro Cardenas–Acapulco Gas Pipeline
331 kilometers Natural Gas Pipeline
States of Michoacan and Guerrera
US $ 170 Million
Tender to be launched December 29, 2015 Project to be in operation 2018
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.
Jaltipan-Lazaro Carden Gas Pipeline
247 kilometers Natural Gas Pipeline
States of Oaxaca and Veracruz
US $ 230 Million
Salina Cruz-Tapachula Gas Pipeline
440 kilometers Natural Gas Pipeline
States of Chiapas and Oaxaca
US $ 730Million
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.
Los Ramones-Cempoala Gas Pipeline
885kilometers Natural Gas Pipeline
US $ 900 Million
Tender to be launched March,2016
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.
Nuclear Energy – Laguna Verde Expansion
Laguna Verde Nuclear Plant Expansion Reactors 3 and 4
State of Veracruz, Gulf of Mexico
US $8 billion
Tenders to be published March 2017
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.
Central de Ciclo Combinado Noroeste (Topolobampo II)
Natural Gas Fired Power Plant
State of Sinaloa
US $1.084 billion
Bid Due Date of May 11, 2015; Operational in 2018
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)
US $1.098 billion
Bid Due Date of July 15, 2015; Operational in 2018
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.
Combined Cycle Plant Empalme I
US $738 million
Awarded March 31, 2015; Operational in 2018
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.
Baja California Sur VI Internal Combustion Power Plant (Dual Fuel)
Combustion Power Plant
US $105 million
January, 2016
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.
San Luis Potosí Combined Cycle Power Plant
Combined Cycle Power
State of San Luis Potosi
US $864 million
May, 2016
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.
Southeastern Wind Power Centers II and III
Wind Power Plant
State of Oaxaca
US $1.079 million
Fall/Winter of 2015 – March 2016
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.
Southeastern Wind Power Centers III-VI
Wind Power Generation and Transmission
Oaxaca State
US $2.8 billion
2015-2020
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.
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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