Mexico Pacific awards contract for pipeline supplying Saguaro Energia
US LNG developer Mexico Pacific said November 27 it had contracted with GDI Sicim Pipelines and Italian engineering firm Bonatti to build the 500-mile Sierra Madre pipeline that will supply the first phase of the 15mn tonnes/year Saguaro Energia LNG project in Sonora, Mexico.
Under the lump-sum-turnkey engineering, procurement and construction (EPC) contract, the GDI Sicim Pipelines and Bonatti joint venture will engineer, procure and construct the 2.8bn ft3/day Sierra Madre pipeline with Bonatti’s scope extending to the required compressor stations.
“Execution of our pipeline EPC contracts represents yet another important inflection point for our project as we prepare to move into construction,” Mexico Pacific CEO Ivan Van der Walt said. “We look forward to working with GDI Sicim Pipelines and Bonatti in delivering a project that will bring transformational value to Mexico and critically needed cleaner energy supply to global markets.”
Bonatti’s North American subsidiary, Pacific Atlantic Pipeline Construction, had been contracted for three sections of the recently-completed Coastal GasLink (CGL) pipeline serving the LNG Canada project on Canada’s west coast, but was removed and replaced by other contractors in early 2022. At the time, TC Energy attributed recent cost increases for CGL to, among other things, “impacts of contractor underperformance and disputes.”