Contract Awarded For The Sierra Madre Pipeline Project’s Implementation

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Regarding the execution of Mexico’s Sierra Madre pipeline project, Mexico Pacific, an energy company based in the South America nation, recently awarded a contract to a JV of GDI Sicim Pipelines and Bonatti.

The JV, according to the contract, will be in control of the EPC of the Sierra Madre pipeline, which spans 500 miles.

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Vital for the Sierra Madre pipeline project, the installation of compressor stations will be included in Bonatti’s scope of work.

The pipeline is expected to be capable of supplying up to 2.8 bcfd of natural gas. It will run from Mexico Pacific’s 15 million tons annually (mtpa) Saguaro Energia LNG plant, Sonora’s west coast in Puerto Libertad, to the US border.

A collaboration agreement between the Mexican state of Chihuahua’s Government and Mexico Pacific was recently entered by the two entities. The agreement signed is meant to support Sierra Madre Pipeline’s construction. It will also back the project’s operations.

What to expect from the Sierra Madre Pipeline project

According to a statement released by the company at the time, the Sierra Madre Pipeline, as a crucial part of a wider LNG endeavor, will create job opportunities. The project will contribute to the region’s infrastructure development, and improve Chihuahua as well as Mexico, the nation’s economy. As a result of the project’s establishment, Mexico will be positioned as the world’s fourth largest LNG exporter, which hugely contributes to energy security of the globe.

The Saguaro Energia LNG plant, to be commissioned in 2026, will be made up of three trains. The three are expected to boast a capacity of 14.1mtpa when combined.

Executed in phases, the project’s first phase entails two 4.7mtpa liquefaction trains establishment, which are one berth and two tanks.

The third 4.7mtpa train construction will be involved in the second phase of the project.

Mexico Pacific and the Chinese Zhejiang Energy International company signed a 20 year deal in July 2023. The deal will see LNG supplied from the Saguaro Energia facility.

The company will also sell one million metric tons of LNG to Zhejiang Energy annually.