"This investment demonstrates our group's confidence in Mexico's growing economy and our commitment to play an important role as an investor in Mexico's energy future," GDF Suez Chairman and Chief Executive Officer Gerard Mestrallet said in a statement.
Dubbed the Ramones II South, the pipeline will run more than 180 miles through central Mexico. Established through a joint venture with Petroleos Mexicanos, known also as Pemex, the pipeline will have the capacity to carry 1.4 billion cubic feet of natural gas per day.
The French company will serve as the operator of the pipeline, set for completion next year. The entire Ramones pipeline will eventually extend more than 620 miles into Mexico and allow the country to import as much as 2.1 billion cubic feet of U.S. natural gas per day.
"We are delighted to begin construction of the Ramones II South pipeline, which will be key to the expansion of the natural gas transportation system in Mexico," Mestrallet said.
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