Under the two 25-year contracts, Sempra will build, own, and operate about 820km of pipeline that will interconnect the US interstate pipeline system in the state of Arizona to supply natural gas to CFE power plants in the states of Sonora and Sinaloa.

As a part of the first contract, Sempra will construct a 36 inch, 500km, natural gas pipeline that will extend from Sasabe in Arizona, US to Guaymas in Sonora.

The pipeline is expected to have a capacity of 770 million cubic feet (Mcf) of natural gas per day and is anticipated to become operational in late 2014.

Under the second contract, Sempra, will build a 30 inch 320km pipeline from Guaymas to El Oro in Sinaloa which is expected to start operating in the third quarter of 2016 with an annual capacity of 510Mcf.

Sempra Mexico is the Mexico business unit of US based producer and distributor of energy Sempra International.