VILLAHERMOSA, Mexico, June 20, 2013 /PRNewswire/ -- Mexico's Yucatan Peninsula is poised to receive more natural gas for cleaner electric power generation from an extension of the Mayakan pipeline that GDF SUEZ Mexico and GE Energy Financial Services announced today. Energia Mayakan, a subsidiary of GDF SUEZ Mexico and GE Energy Financial Services, is extending its 700-km-long, 24-to-16-inch-diameter Mayakan pipeline that starts in Macuspana, Tabasco, and runs through the states of Chiapas, Campeche and ends in Valladolid, Yucatan.
The extension will run 75 kilometers from the Nuevo Pemex Gas Processing Plant -- owned by Pemex Gas y Petroquimica Basica (PGPB) in Nuevo Pemex, Tabasco -- to connect with the existing Mayakan pipeline in Macuspana, Tabasco. Mexico's electric utility CFE has contracted with PGPB to use 300 MMFCD (million cubic feet per day) of gas through this new 30-inch-diameter pipeline to switch power plants in the Yucatan Peninsula from burning diesel and fuel oil to cleaner and less expensive natural gas.GDF SUEZ Mexico is investing about US$92 million for a 67.5 percent equity stake in the pipeline, while GE Energy Financial Services is supplying about US$44 million for a 32.5 percent stake. No debt financing is involved. Preparations for construction – to be carried out by Mexico's Arendal – are under way, with completion of the pipeline extension slated for June 2014. GDF SUEZ and GE Energy Financial Services have been partners on the original Mayakan pipeline, which GDF SUEZ also operates, since 1999. The extension is being carried out under the existing natural gas transportation permit for Mayakan Energia, in accordance with Mexico's regulations. "This investment helps Mexico strengthen its natural gas infrastructure in the kind of critical, contracted, long-lived midstream assets we know well," said Alex Urquhart, president and CEO of GE Energy Financial Services. "In addition, this transaction illustrates our commitment to improving the assets in our portfolio, investing in projects during their development, and repeating business with valued customers such as Pemex and co-investors such as GDF SUEZ." GDF SUEZ Mexico's CEO, Germain Manchon, remarked, "We are pleased to start Mayakan's extension, and to continue working side by side with the Energy Regulatory Commission, PEMEX, the Federal Electricity Commission, and a trusted partner in GE, to bring more gas and power to a growing region like the Yucatan Peninsula. For GDF SUEZ, this project is proof of our company's commitment to increase our operations and investment in Mexico." About GDF SUEZ Mexico GDF SUEZ Mexico holds investments of over US$1,000 million in energy projects in Mexico, ranging from natural gas distribution and transportation pipelines to power generation facilities. GDF SUEZ Mexico is part of GDF SUEZ Energy North America, Inc., which manages a range of energy businesses in the United States, Mexico, and Canada, including electricity generation and cogeneration, natural gas and liquefied natural gas (LNG) distribution and sales, asset-based trading and origination, and retail energy sales and related services to commercial and industrial customers. GDF SUEZ Energy North America owns and/or operates cogeneration, steam, and chilled water facilities, including those in construction, representing a capacity of close to 13,000 MW of electricity generation, 3.5 million pounds per hour of steam, and 37,000 tons per hour of chilled water. Renewable fuels—wind, hydro, biomass, and solar—power 30 of the facilities in the portfolio. The company's natural gas assets include an LNG receiving terminal just north of Boston, Massachusetts, and natural gas distribution networks and pipelines in Mexico that serve more than 400,000 customers. GDF SUEZ Energy North America is a subsidiary of the international energy groups, GDF SUEZ Energy International and GDF SUEZ. For more information, please visit www.gdfsuezna.com and www.gdfsuez.com . About GE Energy Financial Services GE Energy Financial Services holds investments totaling US$300 million in energy projects in Mexico, ranging from natural gas pipelines to power generation facilities. GE Energy Financial Services—GE's energy investing business—works as a builder, not just a banker, to help meet the world's power and fuel needs. We offer more than money—expertise—for essential, long-lived and capital-intensive power, oil and gas infrastructure—GE's core business. Drawing on GE's energy technical know-how, financial strength and risk management, we see value where others don't and take on our customers' toughest challenges with flexible equity and debt transaction structures. Based in Stamford, Connecticut, GE Energy Financial Services holds an approximately $20 billion global energy portfolio. More information: www.geenergyfinancialservices.com . Follow GE Energy Financial Services on Twitter: @GEEnergyFinServ About GE GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's website at www.ge.com . SOURCE GDF SUEZ; GE Energy Financial Services
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts