Mexico's Gas System Operator Eyeing Network Expansion Proposals
06.08.2023 By Tank Terminals - NEWS

June 8, 2023 [bnamericas]-The operator of Mexico’s national gas transport and storage system (Sistrangas), Cenagas, is receiving proposals to expand the pipeline system.


Cenagas wants to incentivize natural gas use as domestic supply is rising due to higher output and stronger links with the US, the world’s biggest natural gas producer.

Companies are encouraged to provide estimates of their potential gas demand over the next 15 years to help Cenagas design a “prospective national balance,” helping it plan the projects to meet this demand, according to a press release.

These projects would be reflected in this year’s revision of the 2020-24 gas network plan.

The plan includes the flagship Southeast Gateway and Jaltipan-Salina Cruz pipelines, as well as smaller projects such as the Prosperidad, Francisco Madero and Leona Vicario lines.

In March, Cenagas also started assigning excess capacity of the Valtierra-Lazaro Cardenas pipeline connecting Guanajuato and Michoacan states. The capacity is derived from the construction of the Patzcuaro compression station, Cenagas said.

According to Cenagas, the expanded pipeline will enable 23,085GJ/d (21.8f3/d) of output for offtakers in Michoacán state.

The expansion will be carried out through an investment agreement between Cenagas and steel giant ArcelorMittal, which owns a steel plant in the port town of Lazaro Cardenas. The winning bidders will be announced on June 20.

Cenagas said bidders that want to use the supply to generate electric power or for industrial hydrocarbon-based activities will get preferential treatment, suggesting an advantage for public utility CFE and federal oil and gas giant Pemex.

In related news, CFE’s gas trading arm CFEnergia launched a tender, seeking a company to conduct social management and consultation for the construction of an unspecified pipeline.

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