Mirage Energy has proposed to sell its 100% participating interest in its $1.2bn Concho/Progreso project to France-incorporated Organization Mondiale De development (OMD).
The Concho/Progreso project comprises a US-Mexico pipeline system that will span around 413km, and a natural gas storage facility in Mexico with a storage capacity of 786BCF of natural gas.
The Texas-based Mirage Energy has signed a binding memorandum of understanding (MOU) with OMD with the latter expected to give its commitment towards the entire funding of the Concho/Progreso project, as per the terms.
The proposed funding for the project will be made through eight tranches of $150m with each payable at 30-day intervals starting on, or about mid-April 2019.
The Concho/Progreso project is designed to connect Texas to the Mexican national pipeline grid, SISTRANGAS. Its pipeline system will transport natural gas from the Banquete/Agua Dulce region to Station 19 and Los Ramones interconnection points on SISTRANGAS.
The project will also have access to the proposed Brazil Field Natural Gas Storage Facility.
Mirage intends to develop a 42inch diameter pipeline system made up of four sections – Concho Extension connecting pipeline, Concho Line, Progreso Pipeline and Progreso II Extension.
Concho Extension will be a 74.3km long bidirectional pipeline from the Banquette/Agula Dulce area to Falfurrias, Texas. It will be extended through the Concho Line, a 151km long bi-directional pipeline that will connect it to Progreso Crossing – a new international crossing at the Mexico border near Progreso in Texas.
From the Progreso Crossing, a 58km long bi-directional pipeline called Progreso Pipeline will connect the Concho/Progreso pipeline system to CENAGAS STATION 19 in Mexico.
The fourth section of the pipeline system will comprise a 107.8km long directional pipeline called Progreso II Extension, which will link the Progreso Pipeline at Station 19 to the Los Ramones interconnect in Mexico.
Mirage Energy is also considering to build a 22.5km long pipeline called Storage Line to connect the Progreso Crossing pipeline section to the Brazil Storage Field in Tamaulipas in Mexico.
The company expects to begin final development of the Concho/Progreso project from next month in order to be in a position to secure the necessary permits and authorizations in the US and Mexico in the third quarter of 2019.
Mirage Energy, in a statement, said: “The company has completed the necessary engineering and design of the pipeline and the natural gas storage field. The alignment for pipeline has also been substantially completed and are in the process of securing rights of way.”