Mexico City, Mexico — CFEenergía and CFE International, subsidiaries of the Federal Electricity Commission (CFE), signed long-term contracts for the supply of 81,000 million BTU per day of natural gas to the fertilizer plant in Topolobampo, Sinaloa.
The 15-year long term contracts will build and develop the Gas and Petrochemical company of the West, a subsidiary of the Swiss company Proman AG.
“Said supply of natural gas is equivalent to twice the consumption of natural gas required by Mexico City and represents for the CFE the possibility of taking advantage of the excess natural gas transportation capacity contracted unnecessarily in the previous administration,” they reported in a statement.
“This strategic decision will allow the CFE to generate revenues of more than $2 billion dollars during the term of the contract. With this, the state production company is diversified and consolidated as an energy company, not just an electricity company.”
The CFE went on to explain that the construction and development of the fertilizer plant in Topolobampo, Sinaloa, represents benefits such as a boost to foreign investment of approximately $5 billion dollars and national production of fertilizers, of approximately 800,000 tons per year, to guarantee food self-sufficiency in northwestern Mexico, in accordance with the policy outlined by President Andrés Manuel López Obrador to boost national fertilizer production.
In addition, it represents an important support for the productivity of the Mexican countryside historically abandoned in previous administrations, as well as the creation of 2,500 direct jobs and 7,500 indirect jobs during the construction of the plant in question.