Gas y Petroquimica de Occidente, S.A. de C.V. (GPO), G2X Energy Inc. and CFEnergia (CFEn) have announced that they have entered into a 15-year natural gas transportation and supply contract in support of a new Mexican fertilizer plant.
The plant will be constructed by GPO in Topolobampo, Sinaloa, Mexico. The 81 000 million Btu/d contract with CFEn will enable GPO's ammonia plant to make use of clean natural gas that will be sourced domestically or from somewhere else in North America. GPO will be CFEn's first petrochemical plant customer.
The natural gas supply contract marks a crucial milestone in the development of the new ammonia plant, which will be the first major investment in Mexico by GPO's major shareholder, Switzerland-based Proman. The ammonia plant will be the first ammonia plant on the Pacific coast and will provide safely produced, low-cost, fertilizer to consumers in Sinaloa.