Feb 17 β€’ 02:03 UTC πŸ‡²πŸ‡½ Mexico Milenio (ES)

CFE signs natural gas supply contract for the Mexinol project in Sinaloa

The Federal Electricity Commission (CFE) of Mexico signed a long-term natural gas supply contract for the Mexinol project, ensuring operational readiness and construction commencement by mid-2026.

The Federal Electricity Commission (CFE), through its subsidiary CFEnergΓ­a, has signed a long-term contract to supply natural gas for the Mexinol project, which is set to be built near Topolobampo in Ahome, Sinaloa. This contract secures approximately 160 million cubic feet of natural gas per day, which is essential for producing ultra-low-carbon methanol. According to Transition Industries, the developer behind the project, this agreement is crucial for initiating construction targeted for the second quarter of 2026.

The natural gas will be supplied at market prices and is expected to come from the United States, utilizing existing infrastructure to optimize costs and distribution. This move is aligned with Mexico's ongoing efforts to enhance its energy production capabilities, particularly in renewable and lower-carbon alternatives. The project not only promises to boost local energy resources but also is a step toward achieving broader environmental goals by focusing on sustainable energy production methods.

By securing this gas supply contract, CFE is reinforcing its commitment to support new industrial projects and underscore Mexico's growing role in the clean energy transition. The flexibility built into the agreement, typically subject to conventional market conditions, emphasizes CFE's strategic approach to energy supply while catering to the increasing energy demands resulting from industrial expansions in the region.

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