The Texas-Tuxpan gas pipeline: A brief overview
Since 2016, the Texas-Tuxpan gas pipeline project, which will carry natural gas from the US to Veracruz has been in the making. The $2.1 billion project will become one the largest projects in Mexico and will cater for a growing market in the region.
Taking under three years to complete, the pipeline will be undertaken by Sempra Energy and TransCanada Corporation in a joint venture, which will deliver 2.6 billion cubic feet of natural gas per day over 800 kilometres, utilising 1.8 million tonnes of steel.
Increasing employment figures in Mexico, TransCanada President and CEO Russ Girling said: "We are extremely pleased to further our growth plans in Mexico with one of the most important natural gas infrastructure projects for that country's future. This new project brings our footprint of existing assets and projects in development in Mexico to more than $5 billion, all underpinned by 25-year agreements with Mexico's state power company."
IEnova (part of Sempra Energy) CEO Carlos Ruiz has commented that “with this supply it will be possible for the [Federal Electricity] commission to generate electricity at more competitive prices, which will benefit a lot of families as well as commerce and industry in the country,” highlighting a growing demand for natural gas within the region.
France to invest €1.8bn in Egypt’s infrastructure
France will invest a total of €1.8bn into Egypt’s infrastructure focusing specifically on upgrading the Cairo Metro, building a railway to Sudan, and developing water and energy schemes. Officials have called the investment a “major boost to bilateral cooperation”.
The Cairo Metro
Included in the financing is a concessional government loan of around €800mn to upgrade Line 1 of the Cairo Metro, introduced in the 1980s. The financing will pay for 55 trainsets for the line and is provided by the French engineering company, Alstom.
Line 6 is also due to be upgraded using further state-guaranteed loans worth up to €2bn. Bruno Le Maire said that this would be negotiated over the next six months. France and Egypt have worked in close cooperation ever since Abdel Fattah al-Sisi became president in 2014, despite differences over human rights and strong criticism of Egypt by rights activists and some foreign states.
Nine more projects over the next half a decade
A further €1bn from France’s development agency, Agence Française de Développement (AFD), aims to cover a range of other projects over the next half a decade.
These projects include a railway line between Aswan, southern Egypt, and Wadi Halfa in Sudan, as well as several projects in the renewable energy and water purification industries. Bruno Le Maire, France’s Finance Minister, said Egypt was a “strategic partner and commercial dealings with it would be developed. France will substantially increase its direct exposure to Egypt, becoming the first counter-party for government to government loans,” he said.
According to Le Maire, the AFD will also €150mn to support the construction of a universal health insurance programme. French contractors such as Vinci and Bouygues have a long history of working on the Egyptian capital’s underground system.
Talking about the relationship between France And Egypt, Le Maire concluded: “France will substantially increase its direct exposure to Egypt, becoming the first counter-party for government to government loans”.