OREANDA-NEWS. France's Engie will spend at least $300mn to connect its Energia Mayakan natural gas pipeline in southeastern Mexico to industrial and tourism users in Quintana Roo state.

The company will first consult with industrial and tourism-related companies to gauge uncommitted interest before holding an open season. A deadline for expressions of interest has not been announced.

The 780km pipeline currently flows natural gas from Ciudad Pemex in Tabasco state, to Valladolid in Yucatan state. Practically all of the pipeline's capacity is reserved for state-owned CFE under a 243mn cf/d contract that serves five combined cycle and thermoelectric power stations in the states of Campeche and Yucatan. A further 7mn cf/d of transport capacity is reserved for gas traders operating in the region.

Engie owns the pipeline in partnership with GE Capital and EXI CKD, a specialist energy investment fund.

Home to Cancun and the surrounding Riviera Maya, Quintana Roo state is one of Mexico's largest tourist destinations. Engie plans to extend the pipeline 160km in order to bring natural gas to the state's major urban areas as well as the industrial and hotel zones.