Energy company Mexico Pacific has awarded a contract to a JV of GDI Sicim Pipelines and Bonatti for the construction of the Sierra Madre pipeline project in Mexico.

Under the contract, the JV will be responsible for the EPC of the 500-mile Sierra Madre pipeline.

Bonatti’s scope will extend to the installing compressor stations needed for the pipeline project.

The Sierra Madre Pipeline will have the capacity to supply up to 2.8bcfd of natural gas from the US border to Mexico Pacific’s 15 million tonnes per year (mtpa) Saguaro Energia LNG plant on the west coast in Puerto Libertad, Sonora.

Recently, Mexico Pacific signed a collaboration agreement with the Government of the Mexican state of Chihuahua to support the construction and operation of the Sierra Madre Pipeline.

At that time, the company said in a statement: “Comprising a key part of the broader LNG project, the Sierra Madre Pipeline will bring employment opportunities, infrastructure development, community improvement and economic growth to Chihuahua and the nation, while positioning Mexico as the fourth-largest LNG exporting country worldwide, significantly contributing to global energy security.”

Due to be commissioned in 2026, the Saguaro Energia LNG facility will comprise three trains and have a combined capacity of 14.1mtpa.

The project is being developed in phases, with the first phase involving the construction of two 4.7mtpa liquefaction trains, two tanks and one berth.

The second phase will involve the construction of a third 4.7mtpa train.

In July 2023, Mexico Pacific signed an agreement with China’s Zhejiang Energy International to supply LNG from the Saguaro Energia facility.

Under a 20-year deal, Mexico Pacific will sell one million metric tonnes of LNG annually from its Saguaro Energia plant to Zhejiang Energy.