Comision Federal de Electricidad, a utility company based in Mexico known by its initials CFE, announced it awarded a contract to Sempra Energy to build a 329-natural gas pipeline, reports Bloomberg News.
Sempra will build and operate the natural gas pipeline for the next 25 years. A two-phase construction strategy envisions final completely by mid 2015.
The pipeline would connect natural gas reserves located in Arizona to markets in northern Mexico. Both phases, once completed would carry as much as 760 million cubic feet of natural gas per day.
Bloomberg reports Mexico aims to expand its natural gas pipeline network by 40 percent in an effort to keep up with increased imports. The country has around 6,000 miles of pipe, the ninth-longest domestic network on the world.
Sempra had no public comment on the deal.
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