CFE has awarded IEnova the contract to build the Ojinaga-El Encino natural gas pipeline. IEnova will be responsible for the procurement of land, financing, construction, engineering, operation and maintenance of the project, the firm said in a release. The 205km pipeline will stretch from El Ojinaga in Chihuahua state, near the US border, to El Encino in Durango state.

It will have a 24-inch diameter and transportation capacity of 38.2Mm3/d. The cost of the pipeline is expected to be around USD 400 million. The line is one of 22 the Mexican government plans to build over the next 15 years to increase supply.