GDF Suez, Pemex start construction on Ramones II South gas pipeline

GDF Suez, together with its partner Pemex, reported the start of construction on the Ramones Phase II South pipeline (Ramones II South), a segment of the Ramones natural gas pipeline system, which is one of the largest energy infrastructure projects in Mexico’s history, extending from the Texas border to central Mexico.

Established as a joint venture between Pemex and GDF Suez, Ramones II South will span 291 kms from San Luis Potosi to Apaseo El Alto, Guanajuato, and represents a total estimated investment cost of $1 billion. The Ramones II South pipeline will have the capacity to deliver 1.4 billion cubic feet per day of natural gas.

“We are delighted to begin construction of the Ramones II South pipeline, which will be key to the expansion of the natural gas transportation system in Mexico,” said Gerard Mestrallet, CEO of GDF Suez. “This investment demonstrates our Group’s confidence in Mexico’s growing economy and our commitment to play an important role as an investor in Mexico’s energy future.”

The company responsible for the construction of the 42-inch diameter pipeline is ICA Fluor.

GDF Suez will operate and maintain the project from its completion, which is anticipated by the end of 2015. The project is expected to generate 1,480 construction jobs and 3,000 indirect jobs.

The Ramones natural gas pipeline, of a total length exceeding 1,000 kms, will be an important project for the development and energy security of Mexico, allowing for the importation from the United States of up to 2.1 billion cubic feet per day of natural gas.

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