The federal government has announced a six-year overhaul of Mexico’s domestic natural gas market, coupled with building some major extensions to the existing natural gas pipeline network.
Recent discoveries of massive reserves of shale gas have prompted the government to abandon plans to build more nuclear power stations and focus more attention on natural gas. New combined-cycle power stations are planned, alongside 4,400 km of new pipelines, which will be funded by 8 billion dollars of public-private financing and bring natural gas to more than 5 million potential consumers for the first time.
The expansion of Mexico’s pipeline network will extend the system into four states–Zacatecas, Colima, Sinaloa and Morelos–where natural gas was previously unavailable. The improvements in infrastructure should persuade many businesses to switch from oil and liquid petroleum gas to cleaner and less expensive natural gas.
The major projects are shown on the map (green pipelines already exist). The Manzanillo-Guadalajara section (shown in red) is already built and being subjected to final testing before being brought on-stream early in 2012. It will immediately increase the competitiveness of companies in several key parts of central Mexico.
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