Engie teams up with Macquarie on Mexico pipeline expansion

French energy company Engie has teamed up with global infrastructure giant Macquarie Asset Management to double the capacity of the Mayakan gas pipeline on the Yucatán peninsula of southeast Mexico.

Engie signed a 30-year agreement in March with Mexico's state-owned utility CFE to double Mayakan's transportation capacity from 250Mf3/d to 567Mf3/d by building more than 700km of pipeline. 

Reuters has reported that Macquarie will pay US$360mn for a 50% stake in the pipeline. A Macquarie spokesperson declined to confirm financial details.

Construction of the pipeline began in June and is expected to be completed in 2026.

The project will stimulate the economic development of Chiapas, Campeche, Tabasco and Yucatán states, Macquarie said in a release. 

CFE is building two combined-cycle gas turbine plants on the Yucatán peninsula which will be fed by gas provided by the pipeline. Gas from the pipeline will also supply CFE's existing power plants and other businesses in the region.

The expanded duct will connect to the Southeast Gateway, a 1.3Bf3/d, US$4.5bn marine pipeline that CFE is building with Canada’s TC Energy.