Mexico Pacific, an energy company, has awarded a contract to a joint venture (JV) of GDI Sicim Pipelines and Bonatti for the engineering, procurement, and construction (EPC) of the Sierra Madre pipeline project in Mexico.

The 500-mile pipeline will have the capacity to transport up to 2.8 billion cubic feet per day (bcfd) of natural gas from the US border to Mexico Pacific’s Saguaro Energia LNG plant on the west coast in Puerto Libertad, Sonora.

The LNG plant will have a combined production capacity of 14.1 million tonnes per annum (mtpa).

“The Sierra Madre Pipeline is a key part of our broader LNG project and will bring employment opportunities, infrastructure development, community improvement, and economic growth to Chihuahua and the nation,” said a Mexico Pacific spokesperson.

“It will also position Mexico as the fourth-largest LNG exporting country worldwide, significantly contributing to global energy security.”

The Saguaro Energia LNG facility is expected to be commissioned in 2026. The project is being developed in phases, with the first phase involving the construction of two 4.7mtpa liquefaction trains, two tanks, and one berth. The second phase will involve the construction of a third 4.7mtpa train.

In July 2023, Mexico Pacific signed an agreement with China’s Zhejiang Energy International to supply LNG from the Saguaro Energia facility. Under a 20-year deal, Mexico Pacific will sell one million metric tonnes of LNG annually from its Saguaro Energia plant to Zhejiang Energy.