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Pemex signs agreement for Mexico natural gas pipeline

Keywords: Tags  Pemex Gas y Petroquimica, Petroleos Mexicanos, Pemex, Los Ramones project, Mexican natural gas pipeline, steel pipe, Rodrigo Alonso

MEXICO CITY — A natural gas transportation agreement for the proposed Los Ramones pipeline has been signed by Mexico’s Pemex Gas y Petroquímica Básica, part of Petróleos Mexicanos SA de CV (Pemex), and Gasoductos del Noreste S de RL de CV.

The contract will enable the infrastructure development of the first phase of Los Ramones, a 48-inch-diameter pipeline running 71 miles from the northern border of Tamaulipas state to Los Ramones in Nuevo León state.

"The agreement is for 25 years," state-owned Pemex said, noting that the pipeline is slated for start-up in December 2014 at an initial capacity of 1 billion cubic feet per day. Capacity is expected to rise to 2.1 billion cubic feet per day at the end of 2015, when the project’s second phase—a 36-inch-diameter, 460-mile pipeline from Los Ramones to Apaseo el Alto in Guanajuato state—comes on-stream.

The $3.2-billion pipeline will need about 400,000 tonnes of steel pipe, according to Pemex and Mexican steel association Canacero.

Mexico’s steel industry has been affected by "critical alerts" on natural gas consumption applied by Pemex over the past several months, particularly the western and central regions, including Nuevo León, where there are several steelmakers, including Ternium Mexico SA de CV, ArcelorMittal Mexico SA de CV and Deacero SA de CV.

A version of this article was first published by AMM sister publication Steel First

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