CALGARY, ALBERTA--(Marketwired - Oct. 27, 2014) - ATCO and its partner Grupo Hermes S.A. de C.V. have been selected by an affiliate of Mexico's state-owned petroleum company Pemex, PMX Cogeneracion S.A.P.I de C.V. to begin the project development and approval process for a natural gas cogeneration plant at the Miguel Hidalgo refinery near the town of Tula in the state of Hidalgo, Mexico.
Initial estimates value the capital cost of the proposed project at USD $820 million of which ATCO will be responsible for approximately half of the required investment. Partnership approval is expected in 2015, with a commercial operation date in the second half of 2017.
"It is a great honour for ATCO and our partner Grupo Hermes to be selected by Pemex for this important project," said Nancy Southern, Chair, President & Chief Executive Officer, ATCO Group. "ATCO has made a significant long-term commitment to the people and industries of Mexico and we look forward to creating sustainable value and benefits for our partners and the communities where we have the privilege to operate. Mexico is a country of vast opportunity that has a long-standing and meaningful relationship with Canada. On behalf of the people of ATCO, we very much appreciate this opportunity."
Cogeneration is a highly efficient, and environmentally attractive, process that produces both electricity and heat. The Tula cogeneration plant is expected to have a generating capacity of 638 megawatts of electricity and produce 1,247 tonnes of steam per hour.
This announcement marks the second major project awarded to ATCO within the past month. On Oct. 9, ATCO announced that it had been awarded a contract by the Comision Federal de Electricidad to design, build, operate and maintain a natural gas pipeline also near Tula.
Grupo Hermes is a Mexican industrial conglomerate operating in various industries, including manufacturing, construction, infrastructure and energy. Its significant history in Mexico stretches over four decades of delivering large-scale infrastructure projects.
ATCO is an experienced builder, owner and operator of independent power generation plants and has a solid reputation of providing industry leading, reliable, responsible and cost-effective solutions for our customers and partners around the world.
With more than 9,000 employees and assets of approximately $17 billion, ATCO Group is a diversified global corporation delivering service excellence and innovative business solutions through leading companies engages in Structures & Logistics (manufacturing, logistics and noise abatement), Utilities (pipelines, natural gas and electricity transmission and distribution) and Energy (power generation, industrial water infrastructure, natural gas gathering, processing, storage and liquids extraction). More information can be found on www.atco.com.
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Senior Advisor, External Communications