Oct. 15 (Bloomberg) -- Petroleos Mexicanos, the state-owned oil producer, said it will complete the second phase of the Los Ramones natural gas pipeline after rejecting a bid from Spain’s Enagas SA and France’s GDF Suez.
Pemex, as the Mexico City-based company is known, will construct the 740-kilometer (469-mile) phase of the pipeline by 2015, the company said today in an e-mailed statement. Enagas submitted the sole bid for the project, which will connect with Los Ramones initial phase to extend from the Texas border to the central Mexican state of Guanajuato.
The Enagas bid, which was a joint proposal with France’s GDF Suez, was voided because it “did not meet the requested requirements,” the company said.
Pemex said it will pair with TAG Pipelines, a subsidiary of MGI International, to complete the second phase and plans to decide how to finance the next phase within the next few days.
IEnova, Sempra Energy’s Mexico unit, owns 50 percent of the pipeline’s first phase along with a Pemex subsidiary.
Mexico needs about $13 billion for gas pipelines, according to a Credit-Suisse research note on Sept. 26. Mexico’s natural gas demand increased 5.7 percent annually during the last 10 years, Pemex has said.
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