Ramal Tula Natural Gas Pipeline

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In October 2014, ATCO Servicios y Energia S.A. de C.V. and ATCO Gas and Pipelines Ltda (subsidiaries of the Canadian ATCO Group) were awarded the 25-year contract to build and operate a 17-km natural gas pipeline connecting the Zempoala - Santa Ana pipeline to Tula Power Plant and Francisco Perez Rios Power Plant, state of Hidalgo, Mexico. The pipeline was set to have a capacity of 485 million cubic feet per day. Besides ATCO/Grupo Hermes, only the Mexican company Arendal took part in the bidding process. The bidding criteria was the lowest investment cost (the winning offer was 15% below the ceiling established by the regulatory agency CFE). The investment was estimated at US$ 65.7 million. ATCO financed the project with its own resources. Construction works started in February 2015, and commercial operations were expected to commence in the end of 2015.