Proyecto de Energia Mexico (PEM)

active

Proyectos de Energia Mexico was awarded, through a competitive bidding process, a 30-year concession to distribute natural gas in Mexican Federal District in June 1998. The selection criterion was the minimum tariff with the maximum of service coverage by the fifth year of operations. The concession contract granted to the concessionaire exclusive rights to distribute natural gas in its concession area during the first five years. The concession area was one of the two in which the Valley of Mexico was split for natural gas distribution concessioning. The other concession area was Valle Cuautitlan-Texcoco, which was awarded to Mexigas. Proyectos de Energia Mexico was owned by Grupo Diavaz (15%), Texas Utilities (70%), and Controladora Comerciale Industrial (15%) by 1998. The concession included existing distribution assets, which belonged to Pemex (a 87-km distribution network). The company paid US$ 80 million for those assets. In addition, Proyectos de Energia Mexico committed to invest US$ 213 million in expanding its distribution network to 2,600 kms and serving 423,600 customers by its fifth year of operations. The company started its commercial operations in September 1998. During 2000, the spanish company Gas Natural acquired 100% of Metrogas' shares.