Mayakan pipeline expansion slated for 2026, says Engie

Negotiations are continuing between France’s Engie and Mexican federal power company CFE on the construction of a US$1.5bn capacity expansion of the Mayakan natural gas pipeline, which is now slated for operations in 2026.

The pipeline is a key link in plans to increase natural gas supply to the Yucatán peninsula and depends for supply on the construction of the Southeast Gateway marine pipeline as well as a shorter connection between Paraíso, Tabasco state, and federal oil company Pemex’s Cactus processing plant in neighboring Chiapas state.

Engie’s project would take gas from Cactus and run 700km towards Valladolid in Yucatán state, some 150km from tourist hub Cancún. A further extension will connect the line with Cancún, CFE has said.

According to Eva Ribera, VP of business development at Engie Mexico, the company expects to start building the Cactus-Valladolid section next year, although its advancement hinges on negotiations with CFE regarding the terms of the buildout.

“We are working on establishing a final agreement that would allow construction to start as soon as possible,” Ribera told the IMEF Energy and Infrastructure Forum on Tuesday.

According to the executive, the three linked pipeline projects are unlikely to come online at the same time. They are ultimately meant to supply Pemex’s two new combined cycle plants in the region, in Valladolid and nearby Mérida, which are currently under construction.

“The power plants are going full steam ahead, they will meet their schedule” to start operations next year. Southeast Gateway is also “going well,” Ribera added.

The company is moving forward with studies and indigenous consultations, as well as activities usually tackled during the construction phase, such as land rights acquisitions, she said. Construction should start next year for the project to come online fully at the end of 2026, although sections may come online earlier.

Engie currently operates the Mayakan pipeline, which connects Tabasco with Yucatán and runs parallel to the new project. While Mayakan has available capacity, a lack of natural gas supply has limited its use, Ribera said. The new connection to the Southeast Gateway, which will connect Paraíso with Tuxpan in Veracruz, would allow access to new supply sources.