The Villa de Reyes-Guadalajara gas pipeline began operations

The Villa de Reyes-Aguascalientes-Guadalajara (VAG) gas pipeline, owned by the Mexican company Fermaca, began operations. The pipeline is 388 km long, 36 inches in diameter, and will supply natural gas to the areas of San Luis Potosí, Aguascalientes, and Guadalajara, and through their interconnections, to other regions of the country, such as Colima, Michoacán, and central Mexico. With the commissioning of this system, the connectivity of the gas pipeline network known as “Wahalajara” is completed, which transports the cheapest natural gas in the world to Mexico, coming from the Waha region, in Texas, United States. 

This gas pipeline represents the last stretch to complete the “Wahalajara” system, which has a combined transportation capacity of more than 5.3 billion cubic feet of natural gas per day and an extension of 2,150 km in length.

Fermaca and the Federal Electricity Commission (CFE) reported the above and, in turn, the CFE explained that, through its natural gas trading subsidiary, CFEnergía, it had begun supplying fuel from Waha, Texas, to the steel company Arcelor Mittal, the largest industrial consumer of this energy in Mexico.

This contract represents revenues for CFEnergía of more than $ 456 million US dollars, the CFE reported. In addition, the generation plants located in the Manzanillo complex, which currently use liquefied natural gas, will receive continental gas from Waha, which will save the CFE $ 154 million dollars per year.

Additionally, the Salamanca Cogeneración and Valle de México plants will benefit from the supply of this natural gas, having annual savings of $ 28 million US dollars. With this, the CFE will save up to $ 182 million dollars in electricity generation by 2021, as reported.

The CFE thanked Fermaca for his valuable contribution to the development of energy infrastructure for the development of Mexico and his commitment to deliver this hydrocarbon. 

Source: Energia a Debate

Mexico Daily Post