Mexico in $2.8bn infrastructure tender

CFE tender:

Mexico's national power company CFE said on Monday it will offer $2.8 billion in natural gas and electricity infrastructure project contracts by the end of this year aimed at boosting economic growth, according to a report.

The projects include two natural gas pipelines and power plants as well as an electricity transmission project, all located near Mexico's northern border with the United States, Reuters reported.

The scheme is designed to boost natural gas imports from the US and over time help lower electricity rates via cheaper inputs and more modern power infrastructure.

Companies including IEnova, the Mexican unit of US energy firm Sempra Energy, South Korea's KEPCO and France's GDF Suez are widely expected to compete for the contracts.

CFE chief executive Enrique Ochoa said the contracts will be open to private firms in international public tenders and the projects are expected to enter into operation by 2017.

The 263 mile (423 km) Encino-La Laguna natural gas pipeline will transport gas from southern Texas and supply northern Chihuahua and Durango states. It will cost about $650 million and the winning bid will be announced in October.

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