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ICA Fluor to Build a $743 Million Gas Pipeline in Mexico

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Mexican engineering-construction company ICA Fluor has signed a contract with TAG Pipelines Sur S. de R.L. de C.V. for the construction of the 1.42 billion cubic feet (bcf) per day capacity Ramones II Sur Gas Pipeline through the states of San Luis Potosí, Querétaro and Guanajuato in central Mexico.

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TAG Pipelines Sur is a joint venture between Mexico Power and Gas Ventures B.V., a wholly owned subsidiary of GDF Suez, P.M.I. Holdings B.V. and TAG Pipelines S. de R.L. de C.V., an affiliate of Mexgas Supply and Mexgas Enterprises (affiliates of Pemex Gas). Fluor booked its $357 million portion of the contract value in the first quarter of 2014. The legal firm Squire Sanders, led by Alvaro Mestre, Paul O’Hop and Kevin Levey, advised TAG Pipelines on the agreement.

ICA Fluor, which is a joint venture between Texas-based Fluor Corp. and Mexico’s Empresas ICA, S.A.B. de C.V., will be responsible for the engineering, procurement, construction, testing, commissioning and start-up services of the 291.7-km, 42-in. diameter pipeline with one compression station, located in the southern portion of the Los Ramones Phase II gas transportation system. The system will be completed in the second quarter of 2016.

This project is a segment of the integrated Los Ramones transportation system, part of a strategy to supply central Mexico with natural gas imported from the United States. It is the third phase of a transportation system that runs from the U.S.-Mexico border to Apaseo el Alto, Guanajuato, Mexico. As a result of the increasing needs for natural gas availability and distribution in different regions in Mexico, the project is expected to have a large impact on the country’s industry and economy.

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