Villa de Reyes-Aguascalientes-Guadalajara Gas Pipeline

From Global Energy Monitor

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Villa de Reyes-Aguascalientes-Guadalajara Gas Pipeline, also known as the VAG Pipeline or Gasoducto VAG, is an operating natural gas pipeline passing through the states of Jalisco, Aguascalientes and San Luis Potosí, Mexico.[1]

Location

The pipeline runs from Villa de Reyes, San Luis Potosí to Aguascalientes, Aguascalientes to Guadalajara, Jalisco.[2]

Its route passes through Villa de Arriaga (San Luis Potosí state), Pinos (Zacatecas state), El Llano (Aguascalientes state), and several municipalities in Jalisco state, including Ojuelos de Jalisco, Lagos de Moreno, Encarnación de Díaz, Teocaltiche, Jalostotitlán, Cañadas de Obregón, Valle de Guadalupe, Tepatitlán de Morelos, Acatic, Zapotlanejo, El Salto, Tonalá, Tlajomulco de Zuñiga, lxtlahuacán de los Membrillos, and Jocotepec.[3][4]

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Project Details

  • Parent Company: Fermaca[5]
  • Current capacity: 886 million cubic feet per day[6]
  • Length: 241 miles / 388 km[7]
  • Diameter: 36 inches[8]
  • Status: Operating
  • Financing: US$485 million debt financing from ING, Santander, Banco Sabadell, Mizuho, Intesa, Natixis, Nord LB, KfW, BNP Paribas and KDB[9]
  • Start Year: 2020[5][6]

Background

The Villa de Reyes-Aguascalientes-Guadalajara Gas Pipeline is the southernmost and final segment of the Wahalajara network, which brings natural gas from Texas to Mexico via a series of interconnecting pipelines. The Wahalajara system is named after the Waha oil field in Pecos County, Texas and the Mexican city of Guadalajara, which form the northern and southern extremities of the pipeline network. From north to south, the other pipelines included in the Wahalajara network are the Trans-Pecos Gas Pipeline (completed in 2017), the Ojinaga-El Encino Gas Pipeline (2017), the El Encino-La Laguna Gas Pipeline (2018), and the La Laguna-Aguascalientes Natural Gas Pipeline (2019).[10]

The Wahalara pipeline network will play a key role in getting U.S.-sourced gas to displace other LNG imports to Mexico at the Manzanillo LNG Terminal on the Pacific Coast and the Altamira LNG Terminal on the Gulf of Mexico coast. Furthermore, these lines are expected to provide de-bottlenecking relief to the U.S. Permian Basin in West Texas and New Mexico, where production has grown so fast that it exceeds current pipeline takeaway capacity.[11] Major customers to be supplied by the pipeline include ArcelorMittal, whose Lázaro Cárdenas steel plant is Mexico's largest industrial consumer of natural gas, and the gas-fired power plants at Manzanillo and Salamanca.[8]

The Villa de Reyes-Aguascalientes-Guadalajara Gas Pipeline is owned and operated by Fermaca.[1] Construction of the pipeline was completed in March 2020[12], and it began commercial operations in October 2020.[7][13][14][15]

Opposition

In early 2020, communities along the Río Santiago in Jalisco state filed an injunction calling for cancellation of the Villa de Reyes-Aguascalientes-Guadalajara pipeline project due to its negative impact on health and the natural environment.[16]

Financing

In November 2016 the project received US$485 million in debt financing from ING, Santander, Banco Sabadell, Mizuho, Intesa, Natixis, Nord LB, KfW, BNP Paribas and KDB.[9]

Articles and resources

References

  1. 1.0 1.1 Mexico's Gas Pipeline Woes Yield Binational Challenges, Rigzone, Feb.20 2018
  2. Infrastructure, Santa Fe Gas, accessed October 2018
  3. "Gasoducto Villa de Reyes-Aguascalientes-Guadalajara". Aberartegi. Retrieved 2021-06-30.
  4. "Manifestación de Impacto Ambiental: Proyecto Villa de Reyes - Aguascalientes - Guadalajara" (PDF). Semarnat (Secretaría de Medio Ambiente y Recursos Naturales). August 25, 2016.
  5. 5.0 5.1 "About Us – Our History". Fermaca. Retrieved 2021-04-06.
  6. 6.0 6.1 "Arranca gasoducto Villa de Reyes-Guadalajara". El Norte. July 8, 2020.
  7. 7.0 7.1 "Casi un año después, gasoducto 'leonino' de Fermaca inicia operaciones tras disputa con CFE • Forbes México". Forbes México. 2020-10-02.
  8. 8.0 8.1 "Red de gasoductos "Wahalajara" ya opera en su totalidad". El Economista. October 4, 2020.
  9. 9.0 9.1 Villa de Reyes - Aguascalientes - Guadalajara Gas Pipeline (389KM), IJGlobal, accessed Aug. 18, 2020
  10. "EL SISTEMA WAHALAJARA TERMINA SU CONSTRUCCIÓN". Sobre Orugas. July 10, 2020.
  11. Rick Margolin and Esteban Trejo, Mexican Pipeline Delays To Impact U.S. Gas Flows, Oil Price, accessed October 2019
  12. "Wahalajara commercial start possible for June, but outlook complex". ICIS. April 30, 2020.
  13. "El gasoducto Villa de Reyes-Guadalajara, de Fermaca, comienza operaciones". Expansión. 2020-10-02.
  14. "US gas exports to Mexico set to rise with Wahalajara completion". Oil & Gas Journal. July 6, 2020.
  15. "Pipeline completion expected to boost natural gas exports to Mexico". San Antonio Express News. July 6, 2020.
  16. "Pueblos se amparan contra termoeléctrica y gasoducto". El Informador. January 9, 2020.

Related GEM.wiki articles

External resources

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