Coastal Contracts wins project to build a gas plant in Mexico
KUALA LUMPUR: Coastal Contracts Bhd and its Mexican joint venture partner has secured a project to build a RM258.7mil gas processing plant in Mexico.
The onshore gas "sweetening" plant project, to be constructed at Ixachi field in Veracruz, is for Petroleos Mexicanos (Pemex), the Mexican state-owned petroleum company.
In a Bursa Malaysia filing today, Coastal Contracts said it has a 50% equity interest in the joint venture, while its Mexican business partner, Grupo Empresarial Alfair SAPI de CV, part of the Nuvoil Group of companies, will hold the remaining 50% stake.
"The scope of work for the project mainly comprises of engineering, procurement, construction, operation and maintenance for the gas sweetening plant," it said.
The plant will have a processing capacity of up to 180 mmscf of wet sour gas a day.
Ixachi field located 26km northeast from Tierra Blanca, Veracruz state was discovered in 2017 with reserves of 1.3 billion barrels of oil equivalent, which is the largest onshore discovery in Mexico over the past 25 years.
Once the field hits its peak, it is expected to be the highest-producing onshore field in Mexico.
"The firm period for this contract shall be 32 months and with chances of further extension by Pemex," Coastal Contracts said.
The plant construction period is expected to complete within 120 days and the maximum contract value for the firm period is up to approximately RM258.7mil.