Sierra Madre Gas Pipeline

This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.

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Sierra Madre Gas Pipeline, also known as the Saguaro Energía Gas Pipeline, is a proposed gas pipeline in Mexico.

Location

The proposed pipeline would run from an unspecified location in Texas's Permian Basin to the Saguaro Energía LNG Terminal in Puerto Libertad, Sonora state, Mexico.

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Project details

• Operator: Mexico Pacific Ltd, CFE (Comisión Federal de Electricidad)
• Owner: Mexico Pacific Ltd, CFE (Comisión Federal de Electricidad)
• Parent company: Mexico Pacific Ltd, CFE (Comisión Federal de Electricidad)
• Capacity: 2800 MMcf/d
• Length: 850 km
• Diameter: 48 inches
• Status: Proposed
• Start year:
• Cost: US$14 billion (LNG Terminal and pipeline combined)
• Financing:
• Associated infrastructure: Saguaro Energía LNG Terminal

Background

Between May and August 2023, multiple sources reported that Mexico Pacific Ltd — developer of the Saguaro Energía LNG Terminal in Puerto Libertad, Mexico — had reached an agreement with the Mexican government to develop a 48-inch, 800-kilometer gas pipeline to import fossil gas from Texas's Permian Basin to Mexico's Pacific coast via the states of Chihuahua and Sonora.

Details of the pipeline's exact route and development timeline remained sketchy, but Mexico Pacific Ltd stated in a press release that the parties had reached a "20-year agreement" under which fossil gas would be transported from the Permian Basin to the Saguaro LNG export terminal via "Mexico Pacific’s pipeline in the U.S. and... CFE’s pipelines in Mexico."

In November 2023, Mexico Pacific announced that it had awarded an EPC (engineering, procurement, and construction) contract for the pipeline to GDI Sicim Pipelines and Bonatti.

It remained unclear whether there was any connection between the Mexico Pacific/CFE proposal and an earlier proposal made by Oklahoma-based ONEOK to develop a 155-mile, 48-inch pipeline on the US side of the border known as the Saguaro Connector Pipeline. In a January 2023 filing with the US Dept of Energy, ONEOK stated that its Saguaro Connector Pipeline would connect at the border to "NewCo Mexico Pipeline, which has a planned delivery to a natural gas export facility under development on the West Coast of Mexico." An article published in August 2023 by NGI (Natural Gas Intelligence) implied that the two proposals might be related, but the lack of additional details made it difficult to confirm a clear link between them.