Mexico's Comision Federal de Electricidad (CFE) in January plans to award the contract for the proposed $1 billion, 1.19 Bcf/d La Laguna -- Aguascalientes natural gas pipeline, which would serve power generation demand in the states of Durango, Zacatecas and Aguascalientes, as well as central and western Mexico.

The 373-mile La Laguna -- Aguascalientes would interconnect with the 1.5 Bcf/d El Encino -- La Laguna pipeline, currently under construction, and the Villa de Reyes -- Aguascalientes -- Guadalajara pipeline, which is about to enter the bidding process.

El Encino -- La Laguna, when complete, will be a 42-inch diameter pipeline carrying natural gas coming from Waha, TX, via the Ojinaga -- El Encino pipeline (to be contracted in November) and the Trans-Pecos Pipeline, which is being developed on the other side of the U.S.-Mexico border (see Daily GPIJuly 27). The gas will serve serve power plants in the states of Chihuahua and Durango.

The 1 Bcf/d Villa de Reyes -- Aguascalientes -- Guadalajara pipeline will serve power generators in Aguascalientes and Jalisco, as well as central and western Mexico, according to CFE documents. Its contract is expected to be awarded in December.