CFEnergía signs $4-bln contract

MEXICO CITY, September 5, 2017 – A subsidiary of Mexico’s Federal Electricity Commission, CFEnergía, has signed a USD 4-billion natural gas supply contract with power company Iberdrola, the state-owned entity announced on Monday.

Under the 24-year contract, which was signed on August 31, CFEnergía will provide gas feedstock to Iberdrola’s El Carmen combined-cycle power plant in the state of Nuevo León. Construction of the 866-MW power generation facility began on March 30 and it is scheduled to become operational in September 2019.

The Federal Electricity Commission had previously signed a power purchase agreement with Iberdrola to reserve 150 MW of the plant’s capacity.

This gas supply agreement is CFEnergía’s first with an independent electricity generator and its second with a private customer. In late August 2017, the company was granted a USD 240-million contract to supply ArcelorMittal with 4.53 mcm (160 mcf) of gas per day for the next year.

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