Italy's Bonatti Wins EPC Contract for Mexico Pipeline Project

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Researched by Industrial Info Resources--Bonatti (Parma, Italy) has won the engineering, procurement and construction (EPC) contract for the El Oro - Mazatlan natural gas pipeline in the state of Sinaloa, in northwestern Mexico. The contract is valued at $400 million. The 413-kilometer pipeline will be built for TransCanada Corporation (NYSE:TRP) (Alberta, Canada).

The El Oro - Mazatlan pipeline will be built in two segments: the first part will start at the interconnection point at the El Encino - Topolobampo segment in El Oro city, and continue to Costa Rica city; the second part will go from Costa Rica city to Mazatlan. The 24-inch-diameter pipeline will be able to move up to 5.7 million cubic meters of natural gas per day. Operations are scheduled to begin in the fourth quarter of 2016.

This pipeline is part of the north-northwest system of natural gas transportation. The objective of the project is to supply the states of Sonora and Sinaloa with natural gas imported from the U.S.

Mexico's federal electricity commission, Comisión Federal de Electricidad, (CFE) will have access to the pipeline to supply natural gas to its power plants in the region.

Transportadora de Gas del Noroeste already has built and started operation of two pipelines in Mexico: Los Naranjos - Tamazunchale and Manzanillo - Guadalajara. It is currently working on the construction of the El Encino - Topolobampo segment.

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