Mexico’s first auction to reserve natural gas importation capacity produced its winners on Friday.
Three companies — BP EnergÃa MÃ©xico, Industria del Ãlcali, and FÃ¡brica de Envases de Vidrio del PotosÃ — were assigned 220,741 MMBtu/d from a total of 753,722 MMBtu/d offered. Since none of the duct, or pipeline, capacity was exhausted, auction winners will pay the base rate of 31 cents/MMBtu. The authorities considered the auction a success, even though a sizeable amount of capacity went without bids, according to results.
BP EnergÃa MÃ©xico, a subsidiary of BP plc, was assigned 190,000 MMBtu/d on the EFM-Nueces pipeline and an additional 10,000 MMBtu/d on the DCP-Gulf Plains duct. Industria del Ãlcali, a chemicals producer, and Vidrio del PotosÃ, a glass container manufacturer, were assigned 16,584 MMBtu/d and 4,157 MMBtu/d, respectively, on the ETP-Delmita pipeline. No bids were placed for the Southcross-Nueces pipeline.
The importation pipeline auction is tied to the broader open season for the National Integrated Pipeline System (Sistrangas). Winners in the former will be able to offer the capacity they reserved in the Sistrangas process, offers for which may be submitted until March 10. The contracts signed in the importation process will be valid from July 1, 2017, to June 30, 2018.
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