Project

DESIGN, CONSTRUCTION, OPERATION AND MAINTENANCE OF THE GAS PIPELINE “EL ENCINO - LA LAGUNA” LOCATED IN THE STATES OF CHIHUAHUA AND DURANGO.

Sector: Hydrocarbons


Last Revision

October 25, 2024
Short Name of the Project:
0763 CFE: El Encino-La Laguna Gas Pipeline
Type of Investment:
Brownfield
Subsector:
Midstream
Asset (s):
 Gas Pipeline 476.70 KM 
Contract Currency:
US Dollars
Estimated Investment MXN:

9,064,321,180

Estimated Investment USD:

530,077,262

Exchange rate (USD/MXN) used by the Ministry of Finance for the economic plan 2024: $ 17.1
Contract Scope:
  Design,  Construction,  Operation,  Maintenance

DESCRIPTION

The project consists of the design, construction, operation and maintenance of a gas pipeline with a capacity of 1,670 million cubic feet per day (MCFD). The approximate length of the gas pipeline is 476.7 km and 42 inches diameter.

The pipeline is interconnected to the Ojinaga-El Encino gas pipeline and to natural gas transport systems that will supply the central and western regions of the country.

LEGAL AND FINANCIAL STRUCTURE

Type of Project
  Public / Private
Type of Contract
  Provision of services
Term
25 years
Selection Process
International Open Tender
Financing Sources
Private
100 %
MXN
9,064,321,180
USD
530,077,262
Payment Source
Rate
The payments will be made by CFE on a monthly basis, under two concepts agreed in the contract:
- Fixed Capacity Fee: Reserved capacity available for CFE.
- Variable Use Fee: Variable costs to cover the operation and maintenance of the system (taxes, insurance, consumables, etc.)

STATUS

Stage
  Operation
Substage
  > 5 years of operation
RELEVANT DATES
Request for proposals/Announcement July 01, 2014
Proposals Reception November 27, 2014
Ruling December 16, 2014
Contract Signing December 19, 2014
Operation Starting Date April 30, 2018
Term of the Contract March 31, 2042
Contractor
Fermaca Pipeline El Encino  
Major Contractor’s Shareholders
Fermaca

GEOLOCATION

State(s)
Chihuahua, Durango   

SPONSOR

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Entity
Comisión Federal de Electricidad
Department
Subdirección de Negocios No Regulados

SUSTAINABLE INFORMATION

PROJECT’S SUSTAINABILITY SUMMARY

The project is aiming to the expansion of energy infrastructure at lower costs and low environmental impact, to generate future supply to the North and the interconnection with other regions of the country.

* This summary was prepared based on the methodological framework defined by the Inter-American Development Bank (IDB) in the document entitled: “Attributes and Framework for Sustainable Infrastructure”, which is You can check Here.

Additionally, a brief explanation of the methodology and a summary of the questions applied can be consulted in this Document.

ADDITIONAL INFORMATION

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Source
Diario Oficial de la Federación
Description
A Constitutional Government of the United Mexican States Body, which has the function of publishing in the national territory: laws, regulations, agreements, circulars, orders and other acts issued by the powers of the Federation.
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Source
Comisión Federal de Electricidad
Description
State owned productive company involved in power generation, transmission, distribution, commercialization and supply activities.
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Source
Secretaría de Energía
Description
Federal Government entity responsible for controlling, managing and regulating Mexico’s energy resources, and establishing the national energy policy.
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Comisión Reguladora de Energía
Description
The Energy Regulatory Commission is an independent regulatory entity that fosters the efficient growth of the sector, as well as of a reliable power supply. Its mission is to regulate the activities of the power industry in a transparent, impartial, and efficient manner, in order to generate the required certainty that encourages productive investment, promotes healthy competition, and generates an adequate coverage of services.
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Source
Social Witness
Description
Figure who oversees that throughout a bidding procedure the current law is complied with, as a mechanism to strengthen transparency and minimize risks of opacity and corruption in government contracting.
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Secretaría de Medio Ambiente y Recursos Naturales
Description
Federal government entity and sectorial authority responsible for establishing the necessary criteria and instruments to guarantee the protection, preservation, and use of natural resources, by developing an environmental policy that ensures sustainable growth.

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