Macquarie Asset Management is joining Engie SA in a project to double the transport capacity on the existing 250 MMcf/d Energía Mayakan natural gas pipeline serving Mexico’s Yucatán Peninsula, the companies said.
Engie’s Mayakan system spans more than 700 kilometers (435 miles) across the states of Chiapas, Campeche, Tabasco and Yucatán.
The expansion, which Engie first announced in March, is anchored by a 30-year transport agreement with state power company Comisión Federal de Electricidad (CFE). The expanded pipeline would supply gas to CFE’s 499 MW Mérida IV and 1,020 MW Riviera Maya combined-cycle power plants on the peninsula.
“This is one of the most important natural gas transport projects that will be built in Mexico to accelerate the energy transition,” Engie management said. The French multinational firm said it would allow Mexico to reduce its greenhouse gas footprint by up to 7.4 million tons of carbon dioxide equivalent annually.
The alliance with Macquarie Asset Management, a division of global financial services and commodity trading firm Macquarie Group Ltd., “will strengthen the commitment of our company to advance…energy infrastructure projects that positively impact the development and wellbeing of [Mexico’s] regions,” said Engie Mexico’s Felisa Ros, country manager.
Macquarie Asset Management’s Ernesto González, managing director, noted the project would help address energy shortages in southeastern Mexico.
The expanded Mayakan system would be designed to satisfy natural gas demand from “current and future CFE plants,” as well as current and future industrial demand, Engie added.
The Mayakan system receives gas from the Sistrangas national pipeline system via the Cuxtal interconnect. Plans call for Mayakan to eventually interconnect with TC Energy Corp.’s Southeast Gateway offshore pipeline, which is slated to enter service next year.
Natural gas flows on Energía Mayakan have ranged from 147-205 MMcf/d this summer, according to the most recent figures on the pipeline’s electronic bulletin board.
Power burns in Yucatán state have averaged 191 MMcf/d year-to-date through July 3, up 12 MMcf/d versus the same period last year, Wood Mackenzie data show.
Mexico relies on U.S. pipeline imports to meet over 70% of its internal gas demand.
Power To The Peninsulas
Mexican President Andrés Manuel López Obrador and his successor, President-elect Claudia Sheinbaum, have stressed the importance of improving energy access and economic prosperity in the Yucatán and Baja California peninsulas.
Sheinbaum highlighted ongoing efforts to expand natural gas transport and power generation capacity in northwestern Mexico during a recent press conference.
CFE recently completed six power plants with combined capacity of more than 5 GW in Baja California and Sonora states. Five of the plants run on natural gas, while the sixth is a photovoltaic solar array.
Sheinbaum’s comments followed the unveiling of the firm’s natural gas supply strategy for the Baja California Peninsula by Miguel Reyes, who heads CFE’s natural gas marketing business. Reyes touted a partnership between CFE and billionaire Carlos Slim’s Grupo Carso to invest $1.18 billion in a natural gas pipeline connecting Sonora and Baja California. The pipeline’s first section would connect Mexicali with San Luis Río Colorado, while a subsequent section would link with Grupo Carso’s existing Samalayuca-Sásabe pipeline.
Baja California also is poised to become an LNG exporting state, with Sempra’s 3.25 million metric tons/year Energía Costa Azul project set to begin sending out liquefied natural gas cargoes in 2025. The terminal would re-export gas imported via pipeline from the United States.
The capacity already contracted on CFE’s pipelines in northwestern Mexico would ensure supply for the region’s power plants, while excess capacity would be used to export natural gas to other markets, Reyes said.
Reyes and Sheinbaum said that the new power plants, as well as a nearly finished 180-mile transmission line connecting Baja California with the national power grid, would ensure reliable electricity supply for the state for years to come.
“It’s the first time in history that northern Baja California will be connected to the national electric system,” said Sheinbaum.
Scorching temperatures this year have triggered blackouts across Mexico this year, raising questions about the power grid’s reliability.
