Right now the Mexican electric power sector is taking off. In order to keep up with the increased electrical demand from a surging population, Mexico’s state-owned electric utility agency, Comision Federal de Electricidad (CFE), is in the process of investing large sums of money to expand the country’s generation capacity. The nearby natural gas fields in Texas—the Eagle Ford, Barnett and the Permian shales—coupled with today’s lower fuel prices put Mexico in a favorable position to take advantage of bargain-priced natural gas.
As part of the country’s initiative to provide natural gas supplies to fuel its electric power plants in Northern Mexico, it is launching the La Laguna Pipeline project. The proposed pipeline will stretch for 465 kilometers (289 miles) between El Encino in the state of Chihuahua and La Laguna in Durango, and connect a pair of CFE power plants.
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