Pemex in Mexico awards $ 1 billion contract for Ixachi natural gas conditioning plant

A joint venture (JV) led by Malaysian company Coastal Contracts Bhd has been awarded a contract worth approximately $ 1.06 billion from Mexican state oil company Petróleos Mexicanos (Pemex) to build and operate a gas conditioning plant natural gas on the Ixachi onshore gas and condensate field in the state of Veracruz.

The plant will have the capacity to process 300 MMcf / d of wet sour gas at Ixachi, Pemex’s flagship development for natural gas.

The joint venture, Coastoil Dynamic SA de CV, is a partnership between Coastal and the Mexican group Grupo Nuvoil.

Coastal is an integrated provider of marine oil and gas services and solutions listed on the Malaysian Stock Exchange, while Nuvoil is an energy services and solutions provider active in the upstream and midstream segments.

The EMC Papan plant will provide gas sweetening, dewatering, dew point control and liquefied petroleum gas extraction at Ixachi, Coastal said.

Discovered by Pemex in 2017, Ixachi was Mexico’s third largest natural gas field in November, with an average production of 240 MMcf / d. This is lower than Pemex’s previous forecast, which targeted peak production of 638.5 MMcf / d by 2022.

Experts such as Pablo Medina of Welligence Energy Analytics noted Ixachi’s technical challenges, namely its extreme depths (3.7 to 4.3 miles) and high pressure.

The scope of work of the EMC Papan contract includes the engineering, procurement, construction, operation and maintenance of the gas conditioning plant and related infrastructure. Construction is expected to take 250 days, with the plant scheduled to begin operations in the second half of 2022, Coastal said.

Earlier this year, the joint venture commissioned the Perdiz 180 MMcf / d packaging plant in Ixachi, meaning that the EMC Papan plant will bring Ixachi’s total capacity to 480 MMcf / d.

The EMP Papan plant “is seen as a strategic project not only for Pemex, but also for the Mexican government’s goal of producing gas to reach all Mexicans in the country over the coming years,” Coastal said. “For Pemex, this project is attractive because of its proximity to the existing gas collection, separation and measurement infrastructure as well as two large pipelines that will allow gas to flow to the center, the north and possibly , [southeastern] Mexico.”

[Trusted Transparency: Mexican buyers and sellers are basing their natural gas prices off of NGI’s Mexico Gas Price Index. Read the analysis of our fifth survey of active players in Mexico, showcasing market-driven insights now.]

Mexico’s state power company, Comisión Federal de Electricidad (CFE) and Canadian company TC Energy Corp. in 2019.

The company added that Ixachi “is expected to be Mexico’s most productive onshore field once it reaches peak production.”

Pemex CEO Octavio Romero Oropeza said on Tuesday that Pemex is looking to increase its production and processing of wet natural gas and will resume operations at the Lakach deepwater natural gas field, a project that has been dormant since 2016.

Pemex’s natural gas production totaled 3.67 Bcf / d in November, up from 3.59 Bcf / d the same month a year ago, according to upstream regulator Comisión Nacional de Hidrocarburos (CNH).

Pemex reported dry gas production from its process centers of 2.05 Bcf / d, down from 2.2 Bcf / d the previous year.

Source link

About Cassondra Durden

Check Also

Persian Catnip Aromatic Water Market Size and Forecast

New Jersey, United States – Comprehensive analyzes of the fastest growing companies Persian Catnip Aromatic …