Mexico to See Up to $13 Billion in Project Kickoffs in Fourth-Quarter 2016

Researched by Industrial Info Resources (Sugar Land, Texas)--Mexico could see nearly $13 billion in project construction kickoffs in fourth-quarter 2016, including a subsea natural gas pipeline, a power station and a railroad upgrade.

Click the icon at right for a graph showing fourth-quarter project kickoffs in Mexico by industry.

Industrial Info is tracking 19 active oil and natural gas pipeline projects worth $5.1 billion in Mexico that are slated for kickoff in the fourth quarter. In June, TransCanada Corporation (NYSE:TRP) (Alberta, Canada) announced that its joint venture with IEnova, Infraestructura Marina del Golfo (IMG) (a subsidiary of Sempra Energy (NYSE:SRE) (San Diego, California)), was picked to build, own and operate the Sur de Texas-Tuxpan natural gas pipeline in Mexico. The project, valued at $2 billion, involves construction of a 42-inch diameter, 497-mile pipeline that will begin offshore in the Gulf of Mexico near Brownsville, Texas, and end in Tuxpan, Veracruz. The project is supported by a 25-year natural gas transportation service contract for 2.6 billion cubic feet a day with Mexico's state-owned power company, Comisión Federal de Electricidad (CFE). The project will connect with the planned Tuxpan-Tula pipeline. Project completion is set for fourth-quarter 2018.

For related information, see August 3, 2016, article - Mexican Natural Gas Power Plants Warrant New Cross-Border Pipelines for Years to Come.

The Power Industry takes second place in fourth-quarter kickoffs, with more than $3.7 billion in projects. With a total investment value of $950 million, Petroleos Mexicanos' (PEMEX) (Mexico City) 517-megawatt (MW), natural gas-fired cogeneration power station in Salina Cruz, Oaxaca, will supply the Antonio Davali Jaime refinery and the national grid. PMX Cogeneracion, SA de CV (Mexico City) with Enel Green Power Mexico (Mexico City), and the Mexico subsidiary of Abengoa S.A. (NASDAQ:ABGB) (Seville, Spain) are working on the project, which is expected to see completion in October 2018. For more information, see February 11, 2016, article - Abengoa, ENEL Prepare to Build Combined-Cycle Cogen Power Station in Mexico.

The Manufacturing Industry comes in third, with fourth-quarter kickoffs for projects worth projects worth $1.9 billion. The heftiest price tag goes to the planned $678 million upgrade of Istmo de Tehuantepec Railway Line Z. Railroad, which runs 205 kilometers (127 miles) across the Isthmus Tehuantepec from Medias Aguas in Veracruz to Puerto Salina Cruz in Oaxaca. The project by railroad owner Ferrocarril del Istmo de Tehuantepec could see completion as early as fourth-quarter 2017.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.