SAN DIEGO — Sempra Mexico, a wholly owned subsidiary of energy firm Sempra International, has been awarded contracts to construct a 500-mile pipeline that will connect the U.S. interstate pipeline system in Arizona to northwestern Mexico, the company announced Monday.
The $1 billion pipeline network will provide natural gas to new and existing power plants that currently use fuel oil.
The first segment, a 36-inch, 310-mile pipeline will run from Sasabe, south of Tucson, Ariz., to Guaymas, Sonora, and will have the capacity of 770 million cubic feet (Mcf) of natural gas per day. The new pipeline is expected to begin operations late 2014.
The second segment from Guaymas to El Oro, Sinaloa, is a 30-inch, 200-mile pipeline with a capacity of 510 Mcf of natural gas per day. The pipeline is planned to begin operations in the third quarter of 2016.
"We are pleased to have been awarded these projects, which will strengthen the gas transportation system in northern Mexico," said George Liparidis, president and CEO of Sempra International. "These projects represent an extension of our core business in Mexico and an important part of our plan to grow our international business."