VIEW FROM THE TOP
COMPRESSION AND COGENERATION TO MEET RISING DEMAND FERNANDO CALVILLO President and Chairman of the Board at Fermaca
Q: Why is Fermaca’s cogeneration business the best option
The only way to supply that additional amount to gas-fired
for its clients?
facilities is natural gas. The drawbacks of the alternatives
A: Fermaca expanded its business to natural gas
make natural gas the ideal candidate.
compression with a cumulated operational 170,000HP
312
compression capacity at its Chihuahua and Soto la Marina
On the consumption side, the US spends US$2.75 per
compression stations. Additionally, it is developing close
million BTU produced, while Mexico spends US$4.
to 90,000HP of compression in La Laguna, Aguascalientes
Connecting our pipeline system to the US system makes
and San Luis Potosi. Our compression investments respond
more sense than losing money in producing gas. In this
to our long-term vision and the anticipated increase in
context, building pipelines will remain a priority. CENAGAS’
natural gas demand. Fermaca wants to continue providing
national pipeline system, SISTRANGAS, is capped due to
high-quality, cost-competitive natural gas as established
the lack of investment from PEMEX and CFE, creating
in its long-term supply contracts with companies such as
the need for more open seasons. This places Fermaca in
CFE. Fermaca has 2,150km of pipelines with free capacity,
an ideal position to partner with CENAGAS and build an
including Roadrunner, Tarahumara, Palmillas-Toluca and
interconnected and independent natural gas system on par
El Encino-La Laguna. We are also developing La Laguna-
with the country’s needs.
Aguascalientes and Villa de Reyes-Guadalajara. Q: What are Fermaca’s ambitions in gas transportation Cogeneration is the next step. Combining our steam surplus
from Texas to central-west and southeast Mexico?
and our available turbines with additional investments, we
A: Our asset business is looking to set a foothold in an
could provide an estimated power generation capacity
increased number of interconnections within SISTRANGAS
of 100MW based on the assets set to be operational
to extend our gas distribution capacity. We want to
by April 2019. Upgrading our natural gas corridor to an
distribute gas further down in Mexico’s central belt and
energy corridor provides the opportunity to transform and
southern regions and connect our 1,164km operational
adapt natural gas to several other applications, such as
system, with a transport capacity of 3,086MMcf/d, to our
petrochemical, fertilizing or kWh production.
127km Palmillas-Toluca pipeline. Our priority for 2018 is to finish our deployed system in Mexico’s northern region and
Q: How is Fermaca preparing its transition from pipeline
to focus our development efforts on the south.
developer to operator? A: The state of Texas operates close to 90,000km of
Q: What key features does Fermaca look for in potential
pipelines. Mexico’s current natural gas pipeline infrastructure,
partners?
including the projects the current administration developed,
A: Our international expansion in the US shows how
amounts to 20,000km of pipelines. Regardless of the
Fermaca chooses its partners and closes successful
results of the presidential elections, Mexico’s 130 million
business partnerships. To date, we have made investments
population will still require energy. Projecting a conservative
in the US in the vicinity of US$600 million, through our
scenario of 1.5 percent GDP growth over the next six years,
joint venture with ONEOK. The rationale behind this was
the country will need an additional 55,000MW of energy.
finding a reliable partner that understands the intricacies of building pipes, permitting procedures and reducing risks, which ONEOK provided. The results of CFE’s
Fermaca is a Mexican energy company. It specializes in providing
tenders demonstrate that Fermaca provides Mexico’s
natural gas solutions to the midstream segment. Fermaca’s
most competitive OPEX, CAPEX and NPVs. Efficiency
professional team can develop projects from conception to
and competitiveness is the name of the game, which our
completion, managing engineering, financing and construction
engineering and procurement capacity provide.
