The pipeline will serve as the main natural gas supply path to transport up to 2.8Bcf/d of natural gas from the US border to the first phase of the $14bn Saguaro Energia LNG project in Mexico
GDI Sicim Pipelines and Bonatti to execute EPC of the Sierra Madre pipeline project. (Credit: SELİM ARDA ERYILMAZ on Unsplash)
Mexico Pacific has awarded the engineering, procurement, and construction (EPC) contract for the 805km long Sierra Madre pipeline project between the US and Mexico to GDI Sicim Pipelines and Bonatti.
The pipeline will serve as the main natural gas supply path to transport up to 2.8 billion cubic feet per day (Bcf/d) of natural gas from the US border to the first phase of Mexico Pacific’s $14bn Saguaro Energia LNG project.
The liquefied natural gas (LNG) project is being developed in Puerto Libertad in Sonora state. It is designed to produce 15 million tonnes per annum (mtpa) of LNG.
Mexico Pacific CEO Ivan Van der Walt said: “We are pleased to be partnering with GDI Sicim Pipelines and Bonatti. A team of best-in-class international pipeline contractors with proven track records of pipeline execution and delivery in Mexico.
“Execution of our pipeline EPC contracts represents yet another important inflection point for our project as we prepare to move into construction. We look forward to working with GDI Sicim Pipelines and Bonatti in delivering a project that will bring transformational value to Mexico and critically needed cleaner energy supply to global markets.”
According to Mexico Pacific, the lump-sum-turnkey EPC contracts will see the joint venture of GDI Sicim Pipelines and Bonatti engineer, procure, and build the Sierra Madre pipeline.
Bonatti’s scope will extend to the compressor stations required for the pipeline project, which will be laid across Texas, Chihuahua, and Sonora.
Earlier this month, Mexico Pacific entered into a strategic collaboration agreement with the Chihuahua government. The objective of the agreement is to attract key financial investment in Chihuahua to support the construction and operation of the Sierra Madre pipeline.
The agreement’s key principles encompass the Chihuahua government’s commitment to assist Mexico Pacific in mutually beneficial aspects associated with the construction and operation of pipeline infrastructure in the state.
This support extends to areas such as logistics, construction, technology, security, and community engagement.
In July this year, Mexico Pacific secured the backing of the Sonora government for its three-train LNG project. As part of this, the Sonora government has committed to facilitate a streamlined process for starting construction of the Saguaro Energia LNG project.