International Public Bidding for the Construction of a Liquid Natural Gas Degasification Terminal.  

February, 2006 -

The Federal Electricity Commission (the “Commission”) has put out for public bidding the construction and the operation of a Liquid Natural Gas Degasification Terminal (the “Terminal”). The winning tender will construct, operate, and supply gas from the Terminal which will ensure a supply of natural gas to the Commission’s electricity generating plants Manzanillo I and II, Bajio, El Sauz, Salamanca, and Guadalajara I and II. The gas, in large measure, will supply the plants in question and the remainder will be sold to third parties. The Terminal will be located in Manzanillo, Colima, and will have a capacity of 500 million cubic feet of natural gas per day. The construction of the Terminal will take three years, with a cost of 430 million dollars and is expected to supply liquid natural gas from April 1, 2010 to March 31, 2035. Formal receipt of bids and their opening will be in April 2006 and a decision as well as the signing of the contracts will be in May 2006. Derived from this project would be the later construction and operation of a pipeline to transport natural gas from the Terminal to Guadalajara in Mexico’s western region to supply the Guadalajara I and II plants. The pipeline would have a length of 260 kms. and a capacity to transport one billion square feet per day. The pipeline project will be opened for bidding in the future, and is completely different from the Terminal international public bidding project. The construction of the pipeline will require an investment of 200 million dollars. The supply of gas to the Commission’s plants mentioned above, located in Mexico’s western and central zones, will be assured by the Terminal and at the same time Mexico’s dependence on high-cost foreign natural gas producers will be reduced, by having an alternative source of supply. As soon as the pipeline bid gets published, we will let you know. If you need further information, do not hesitate to contact the lawyers of the area, Daniel A. Del Río [email protected] and Juan Carlos Serra [email protected].

 

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