MEXICO CITY: Mexico has unveiled a five-year, $10bn plan to substantially expand its gas pipeline network by 2019 and to be able to import 9bn cubic metres of cheap US gas a day.
The plan expects to add another 5,159 km of pipelines with expected investment of $9.74bn, according to Lourdes Melgar, hydrocarbons undersecretary, writes Jude Webber in Mexico City.
The expansion will bring the country’s total pipeline network to 20,938 km in 2019, she said. That number includes pipelines already built or in construction that are not in the plan.
Although Mexico has embarked on a sweeping energy reform to allow private investment to boost falling oil production and to spur gas production, it recognises that in the mid-term, it needs to boost imports to take advantage of abundant and cheap shale gas in Texas.
That means cheaper gas for Mexican manufacturers – the country has a booming car industry – and will guarantee supplies.
David Madero, head of the Cenagas agency created by Mexico’s energy reform, which will administer the pipelines, said North American gas imports would more than double and the expanded pipeline network would eliminate the need – except for emergencies – for the import of liquefied natural gas by boat.
“We can envisage more vigorous economic growth,” he said.
Mexico’s gas imports have soared to 34 per cent of total use now, from 2 per cent in 1997.
The five-year plan includes one compression station and 12 pipelines, among them an 800km subsea pipeline from South Texas to Tuxpan, expected to cost $3.1bn.
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