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Sempra Bidding for Fourth Mexican Project

Sempra Bidding for Fourth Mexican Project

Sempra Energy International is in the running for its third gas project in Mexico with its bid to build distribution infrastructure to serve the cities of Torreon, Gomez, Palacio, Ciudad Lerdo, and Durango with the La Laguna-Durango system. Mexico's Energy Regulatory Commission (CRE) will announce the winning bidder no later than May 20.

The La Laguna system is to serve 50,000 customers by its fifth year in operation. Projected investment is US$30 million for the system, which will deliver gas expected to supplant fuel oil usage.

San Diego-based Sempra Energy and Mexico's Proxima currently distribute gas in two geographic zones, Mexicali and Chihuahua. Sempra will invest US$64 million in these projects' first five years of operation in order to build more than 994 miles of pipeline, which will supply nearly 77,000 residential, industrial and commercial customers.

Additionally, a Sempra subsidiary was awarded a bid by Mexico's Federal Electricity Commission (CFE) to supply the Presidente Juarez thermoelectric generating station in Rosarito, Baja California. Sempra will invest more than $28 million in order to develop the 22-mile system. Along with the transportation there is a 10-year gas supply agreement. Construction on this project is to start in the next month or two.

"The idea behind all this, and part of Sempra's strategy, is to look for projects in northern Mexico where there's a chance for interconnection across the border," said Sempra spokesman Michael Clark. As far as making money, both Mexicali and Chihuahua are in the black for us."

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