Mexico’s State Utility Inks Gas Supply Deal For Petrochem Plant
Mexico’s former monopoly utility, which now operates an affiliate company that markets natural gas, announced January 17 a new gas supply deal with developers of a new petrochemical plant.
CFEenergia (CFEn) said it has entered into a 15-year contract with Gas y Petroquimica de Occidente (GPO) to supply 81bn Btu/day to GPO’s new ammonia plant, located in Topolobampo, in the western Pacific coastal state of Sinaloa.
CFEn said it is partnering with Houston-based G2X Energy in the project. It’s the first major investment in Mexico by GPO, controlled by Swiss-based Proman.
G2X owns and operates production facilities worldwide that convert natural gas to methanol.
Financial terms of the deal were not released.
CFEn was created three years ago, after the monopoly of CFE came to an end. The reforms also led to the utility entering other energy sectors in Mexico, and it now markets 3.1bn ft3/d of natural gas. Among its clients are power generation companies, manufacturers and distribution companies. GPO is its first petrochemical client.
The new ammonia plant is expected to provide most of its output to the agriculture sector in the state of Sinaloa, Mexico’s largest tomato-growing region.