Iberdrola Halts Gas-Fired, Combined-Cycle Plant Construction in Mexico, an Industrial Info Market Brief

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Iberdrola Energia Monterrey S.A. de C.V., a subsidiary of Iberdrola S.A., recently halted construction of the 1,200-megawatt (MW) Tuxpan Combined-Cycle Project in Tuxpan, Veracruz. Iberdrola cited a delay in Comision Federal de Electricidad's (CFE) decision to sign a contract to supply the project with natural gas.

The project represents an investment of more than $640 million, of which Iberdrola already has spent $40 million in the planning and preliminary phases.

Although negotiations with Mexican authorities continue and the final decision on whether to move forward with the project could be made within a month, some in the industry are asking for CFE to take control of the project in case of cancellation.

Iberdrola also is close to beginning construction of a 514-MW single-shaft combined-cycle expansion at its Tamazunchale Power Plant in the state of San Luis Potosi.

Click here for a list of active Iberdrola projects in Mexico, and see map below.