The State-owned oil company of Mexico Petroleos Mexicanos (Pemex) announced it will invest US$5.5bn on expanding the Mexico’s natural gas pipeline network and to improve the quality of its downstream output.
Five contracts for refineries works were awarded to ICA Fluor Daniel (for the Madero refinery), Técnicas Reunidas (Minatitlan), Samsung Eng. Co. (Salamanca), Foster Wheeler (Salina Cruz) and ACS/Dragados/Cobra (Tula) for a total investment estimated at US$800m. The goal of these investments is to reduce by 97% the sulphur content in diesel, going from 500 to 15 ppm to maintain compliance with the Mexican Official Norm on specifications of fossil fuels for environmental protection. This project will improve air quality, increase the production of diesel Ultra Low Sulphur by about 360 kbl/d and reduce emission of greenhouse gases by more than 12 ktCO2eq/y.
Pemex also announced the start of construction of Phase II of Los Ramones natural gas pipeline project. This pipeline will provide 1,430 mcf (14.8 mcm/y) of additional capacity from the north to the center of the country (741 km) across the states of Nuevo Leon, Tamaulipas, San Luis Potosi, Queretaro and Guanajuato. The estimated investment amounts to US$500-2000m.