GDF Suez Mexico Picks Consortium to Build Los Ramones Sur Natural Gas Pipeline

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Researched by Industrial Info Resources Latin America (Cordoba, Argentina)--The Mexican subsidiary of GDF Suez Company (Paris, France) has selected the consortium ICA Fluor (Mexico City, Mexico) as general contractor for the Los Ramones Sur natural gas pipeline to provide engineering, procurement and construction (EPC), with an estimated investment of $743 million.

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The ICA Fluor consortium was formed by construction company ICA (Mexico City, Mexico) with engineering and construction firm Fluor Corporation (NYSE:FLR) (Irving, Texas).

The Los Ramones Sur project is the third phase of the Transportation System Los Ramones. This pipeline will import natural gas from the U.S. and will run 845 kilometers (km) through the states of Tamaulipas, Nuevo Leon, San Luis Potosi, Queretaro and Guanajuato. This pipeline will increase natural gas capacity by more than 2 million cubic feet per day and will have three compressor stations.

Phase I will cover 114 km and connect Reynosa city with Los Ramones city, through a 48-inch-diameter pipeline. The installation of this section began in the first quarter of 2014 and was performed by Italian firm Bonatti. It is expected to be completed by late 2015.

Phase II was subdivided in Ramones Norte and Sur after the tender was declared void in 2013.

Los Ramones Norte will start in Los Ramones city and end in Villa Hidalgo city, covering a total of 441 km. This stretch will have two compressor stations, one in Linares and another one in Matehuala. The owner is now selecting the company that will perform the EPC work. It is estimated that Los Ramones Norte will be operational by the end of 2015.

Los Ramones Sur, meanwhile, will begin in San Luis Potosi city, with a compressor station, and will run 287 km to Apaseo el Alto city, in Guanajuato. ICA Fluor is developing detailed engineering to begin construction in September 2014, and expects this phase be operational in the second quarter of 2016.

The overall project will supply natural gas to Mexico's north, central and west to meet the country's needs for the next 15 years.

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