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Mexico Unveils $8.1 Billion Natural Gas Pipeline Expansion to Support Power Generation

Mexico Unveils $8.1 Billion Natural Gas Pipeline Expansion to Support Power Generation

Last Modified: 5/15/2026

Team GoodTendersBy Team GoodTenders

Mexico has announced a major 140.9 billion peso ($8.1 billion) investment programme to expand and modernize its national natural gas pipeline network through 2030. The initiative is designed to strengthen energy security, improve fuel supply reliability, and support the country’s rapidly growing power generation sector.

The investment plan will reinforce Mexico’s existing 21,149-kilometre gas transmission system while adding significant new capacity. State agency CENAGAS will lead the programme with more than 87 billion pesos allocated for new pipeline construction, modernization, rehabilitation, and maintenance projects over the next five years.

Major Infrastructure and Procurement Pipeline

As part of the expansion strategy, CENAGAS plans to construct three new natural gas pipelines with a combined capacity of 3.64 billion cubic feet per day. At the same time, the Federal Electricity Commission (CFE) will invest more than 53 billion pesos between 2026 and 2029 to develop nine additional pipeline projects supporting new gas-fired power plants.

The programme represents a major infrastructure and procurement pipeline across engineering, pipeline construction, energy equipment, and power generation sectors. With Mexico continuing to rely heavily on imported natural gas from the United States, the expansion is expected to play a critical role in ensuring long-term grid stability and supporting future industrial growth.

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