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GDF SUEZ starts construction of Ramones II South pipeline, a project to reinforce energy security in Mexico

August 25, 2014

GDF SUEZ, together with its partner PEMEX, announces the start of construction on the Ramones Phase II South pipeline (Ramones II South), a segment of the Ramones natural gas pipeline system, which is one of the largest energy infrastructure projects in Mexico’s history, extending from the Texas border to central Mexico.

Established as a joint venture1 between PEMEX and GDF SUEZ, Ramones II South will span 291 kilometers from San Luis Potosi to Apaseo El Alto, Guanajuato, and represents a total estimated investment cost of USD 1 billion. The Ramones II South pipeline will have the capacity to deliver 1.4 billion cubic feet per day of natural gas.

 “We are delighted to begin construction of the Ramones II South pipeline, which will be  key to the expansion of the natural gas transportation system in Mexico,” said Gerard Mestrallet, Chairman and CEO of GDF SUEZ. “This investment demonstrates our Group’s confidence in Mexico’s growing economy and our commitment to play an important role as an investor in Mexico’s energy future.” 
The company responsible for the construction of the 42-inch diameter pipeline is ICA Fluor.

GDF SUEZ will operate and maintain the project from its completion, which is anticipated by the end of 2015. The project is expected to generate 1,480 construction jobs and 3,000 indirect jobs.

The Ramones natural gas pipeline, of a total length exceeding 1,000 kilometres, will be an important project for the development and energy security of Mexico, allowing for the importation from the United States of up to 2.1 billion cubic feet per day of natural gas.

GDF SUEZ has significant experience in managing large natural gas projects locally in Mexico and internationally. Since beginning operations in Mexico more than 15 years ago, he Group currently operates nearly 1,000 km of pipelines in the country. Additionally in Mexico, GDF SUEZ operates six local gas distribution companies serving more than 400,000 customers and three natural gas-fired power plants that serve a variety of industrial clients and public utility companies. GDF SUEZ is also the leading natural gas distribution network operator in Europe and the third largest liquefied natural gas (LNG) importer in the world.

1 - 50%-50 % Joint venture

GDF SUEZ Mexico is part of GDF SUEZ Energy North America, Inc., which manages a range of energy businesses in the United States, Mexico, and Canada, including electricity generation and cogeneration, natural gas and liquefied natural gas (LNG) distribution and sales, and retail energy sales and related services to commercial and industrial customers. GDF SUEZ Energy North America owns and/or operates cogeneration, steam, and chilled water facilities, including those in construction, representing a capacity of close to 13,000 MW of electricity generation, 3.5 million pounds per hour of steam, and 37,000 tons per hour of chilled water. Renewable fuels—wind, hydro, biomass, and solar—power 28 of the facilities in the portfolio. The company’s natural gas assets include an LNG receiving terminal just north of Boston, Massachusetts, and natural gas distribution networks and pipelines in Mexico that serve more than 400,000 customers.

GDF SUEZ Energy North America is a subsidiary of the international energy Group GDF SUEZ.

For more information: www.gdfsuezna.com and www.engie.com.

GDF SUEZ develops its businesses (power, natural gas, energy services) around a model based on responsible growth to take up today’s major energy and environmental challenges: meeting energy needs, ensuring the security of supply, fighting against climate change and optimizing the use of resources. The Group provides highly efficient and innovative solutions to individuals, cities and businesses by relying on diversified gas-supply sources, flexible and low-emission power generation as well as unique expertise in four key sectors: independent power production, liquefied natural gas, renewable energy and energy efficiency services.GDF SUEZ employs 147,200 people worldwide and achieved revenues of €81,3 billion in 2013. The Group is listed on the Paris, Brussels and Luxembourg stock exchanges and is represented in the main international indices: CAC 40, BEL 20, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe and Euronext Vigeo (World 120, Eurozone 120, Europe 120 and France 20).

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