Mirage Energy Corp (MRGE)

[Andyman23]

Another BN Americas Article:

Mirage Energy set to build US$300mn gas pipelines in Puebla state
Bnamericas
Published: Friday, June 12, 2020

Texas-based Mirage Energy has inked a deal for around US$300mn to develop natural gas pipelines in Puebla state in central Mexico.

The deal, signed with the state and announced on Thursday, involves Mirage building a set of pipelines to deliver 500MMBTU/d (million British Thermal Units per day) of gas to a series of offtakers, including the state itself and various industrial parks.

Stage one will be a 46-mile pipeline connecting Pemex's compression station at San Martín to a new industrial park in Izúcar de Matamoros, Mirage said in a release, adding that it should be able to deliver gas imports at 50% of current prices.

Mirage operates three pipelines in Mexico, two Progreso bidirectional lines and a third, 14-mile bidirectional duct that connects the Progreso lines to the company's Brasil storage field in Tamaulipas state. The Brasil storage field has capacity of 786Bf3 of natural gas.

Both Progreso lines are fed by company pipelines that cross the US-Mexican border close to the town of Progreso, Texas.

The company's first Progeso line stretches 36 miles to Pemex's station 19, while the second Progreso line extends 67 miles from station 19 to the Los Ramones interconnection.

The Puebla pipelines would advance central Mexico’s natural gas network toward integration, promising steadier gas supplies and lower costs.

It could also mark a shift towards smaller, regional deals as major projects come online. The 2.6Bf3/d South Texas-Tuxpan maritime pipeline, which began operations in September 2019, has this year gradually ramped up gas flows, which is effectively forcing completion of smaller projects to transport the gas from Tuxpan.

Meanwhile, this August the Wahalajara pipeline network is expected to be completed, promising to bring 400Mf3/d to the Guadalajara region.

“The era of massive gas and power infrastructure construction is mostly over,” Claudia Espinosa, editor of the Mexico Energy Report, said in a recent webinar hosted by commodity pricing and analysis firm ICIS.

But natgas-related projects like Mirage's are currently in a sweet spot.

Prices are more stable than oil due to steadier demand amid lockdowns and Mexican President Andrés Manuel López Obrador (AMLO), thought by critics to favor NOC Pemex and electric utility CFE over private sector firms, appears less interested in shaping the natgas market ever since private firms agreed to renegotiate transit fees with CFE in 2019.

“The president is an oil man, and gas is an afterthought,” Christopher Lenton, senior editor at Natural Gas Intelligence, said recently.

Mirage Energy did not announce construction timelines for the Puebla pipelines.

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https://www.bnamericas.com/en/news/mirage-energy-set-to-build-us300mn-gas-pipelines-in-puebla-state