On January 29, 2015, the Comisión Federal de Electricidad ("CFE"), the Mexican public utilities company, announced a tender process for new electric energy projects and natural gas transportation infrastructure. The projects are expected bring additional investments of US$3.276 billion into the Mexican energy sector and, upon completion, will add 1,015 kilometers to Mexico's natural gas pipeline system, 666 megawatts ("MW") to Mexico's installed power generation capacity, and 989 kilometers to Mexico's power transmission lines. Bid guidelines are expected to be issued between February and April 2015. 

The projects include: (i) three natural gas pipelines in different regions of the country; (ii) one project to transport natural gas to the State of Baja California; (iii) one combined cycle power plant in the State of Sinaloa; (iv) four power transmission line and substation projects in different regions of the country; and (v) three power distribution projects in different regions of the country.

Here are additional details and timelines for the projects published by the CFE:

Natural Gas Transportation Projects

Samalayuca—Sasabe Pipeline

  • Location and Investment: Chihuahua and Sonora, US$916 million
  • CFE Reserved Capacity: 550 million cubic feet per day ("MMCFD")
  • Approximate Length: 528 kilometers
  • Bid Guidelines Issued: March 2015
  • Proposals Due: May 2015
  • Award of Contract: June 2015
  • Commercial Operation Date: June 2017

Colombia—Escobedo Pipeline

  • Location and Investment: Nuevo León, US$450 million
  • CFE Reserved Capacity: 500 MMCFD
  • Approximate Length: 250 kilometers
  • Bid Guidelines Issued: March 2015
  • Proposals Due: May 2015
  • Award of Contract: June 2015
  • Commercial Operation Date: June 2017

Tuxpan—Tula Pipeline

  • Location and Investment: Veracruz, Puebla, Hidalgo, US$350 million
  • CFE Reserved Capacity: 700 MMCFD
  • Approximate Length: 237 kilometers
  • Bid Guidelines Issued: February 2015
  • Proposals Due: May 2015
  • Award of Contract: June 2015
  • Commercial Operation Date: March 2017

Natural Gas Supply to Baja California

  • Location and Investment: Sinaloa, Baja California Sur, US$600 million
  • CFE Reserved Capacity: 170 MMCFD
  • Approximate Length: Open Technology Bidding (marine transport)
  • Bid Guidelines Issued: March 2015
  • Proposals Due: May 2015
  • Award of Contract: June 2015
  • Commercial Operation Date: June 2017

Electric Power Generation Projects

Topolobampo III Combined Cycle Power Plant

  • Location and Investment: Sinaloa, US$631 million
  • CFE Reserved Capacity: 666 MW
  • Bid Guidelines Issued: November 18, 2014
  • Proposals Due: June 2015
  • Award of Contract: August 2015
  • Commercial Operation Date: June 2018

Power Transmission Projects

706 North Systems (3rd Phase)

  • Location and Investment: Baja California Norte, US$17 million
  • Line Capacity: 115 kilovolts ("kV')
  • Approximate Length: 8.60 kilometers in circuit
  • Bid Guidelines Issued: January 20, 2015
  • Proposals Due: March 2015
  • Award of Contract: April 2015
  • Commercial Operation Date: September 2016

1905 Southeast Transmission—Peninsular

  • Location and Investment: Quintana Roo, Campeche, US$64 million
  • Line Capacity: 230 kV
  • Approximate Length: 367 kilometers in circuit
  • Bid Guidelines Issued: March 2015
  • Proposals Due: May 2015
  • Award of Contract: June 2015
  • Commercial Operation Date: January 2017

1811 Transmission Line to Empalme I Power Plant

  • Location and Investment: Sonora, US$105 million
  • Line Capacity: 400 and 230 kV
  • Approximate Length: 421.10 kilometers in circuit
  • Bid Guidelines Issued: March 2015
  • Proposals Due: June 2015
  • Award of Contract: July 2015
  • Commercial Operation Date: January 2017

1911 Transmission Line to Empalme II Power Plant

  • Location and Investment: Sonora, Sinaloa, US$116 million
  • Line Capacity: 400 kV
  • Approximate Length: 118 kilometers in circuit
  • Bid Guidelines Issued: April 2015
  • Proposals Due: July 2015
  • Award of Contract: July 2015
  • Commercial Operation Date: February 2017

Power Distribution Projects

1420 North Distribution (2nd Phase)

  • Location and Investment: Sonora, US$7 million
  • Substation Capacity: 115 to 13.8 kV with 8 feeders
  • Approximate Length: 3.10 kilometers in circuit
  • Bid Guidelines Issued: January 20, 2015
  • Proposals Due: April 2015
  • Award of Contract: May 2015
  • Commercial Operation Date: May 2016

1721 North Distribution (3rd Phase)

  • Location and Investment: Chihuahua, US$12 million
  • Substation Capacity: 115 kV with 1 feeder
  • Approximate Length: 64.30 kilometers in circuit
  • Bid Guidelines Issued: January 30, 2015
  • Proposals Due: April 2015
  • Award of Contract: May 2015
  • Commercial Operation Date: June 2016

1621 North–South Distribution (6th Phase)

  • Location and Investment: Yucatán, US$8 million
  • Substation Capacity: 115 kV with 8 feeders
  • Approximate Length: 3.10 kilometers in circuit
  • Bid Guidelines Issued: March 2015
  • Proposals Due: June 2015
  • Award of Contract: July 2015
  • Commercial Operation Date: July 2016

CFE will continue to announce tenders for projects to modernize different aspects of Mexico's power and natural gas infrastructure and to meet industrial and domestic demand for power and for cheaper sources of fuel.