CFEnergia inks first deal to supply gas for petrochemical company in Sinaloa
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Gas y Petroquimica de Occidente, S.A. de C.V. (GPO), G2X Energy Inc. and CFEnergia (CFEn) announced that they have entered into a 15-year natural gas transportation and supply contract in support of a new fertilizer plant to be built by GPO in Topolobampo, Sinaloa.
The 81,000 MMBtu/day contract with CFEn will allow GPO's world-class ammonia plant to utilize clean natural gas that will be sourced domestically or from elsewhere in North America. GPO will be CFEn's first petrochemical plant customer. The financial terms of the deal were not disclosed.
CFEn is an affiliate company of Comisión Federal de Electricidad (CFE) created as a result of the Mexico Energy Reform. CFEn markets 3.1 billion cubic feet per day of natural gas. Among CFEn clients are generation companies, industrials, distribution companies and now with GPO the petrochemical industry.
Houston-based G2X Energy develops, owns and operates production facilities that convert natural gas to methanol for the US and international markets.
The consummation of the natural gas supply contract marks a critical step in the development of the new ammonia plant, which will be the first major investment in Mexico by GPO's major shareholder, the leading global energy company, Proman, based in Switzerland.
The Topolobampo ammonia plant will be the first of its kind on the Pacific coast and will provide fertilizer to local consumers in Sinaloa.