A new nitrogen production plant is to be built in Mexico.
Swedish company, Skanska, has been awarded the contract for the new plant by the Mexican branch of Praxair and will be responsible for the engineering, procurement, construction, installation and start-up assistance of the facility as well as the piping for distribution in the project which is predicted to be completed in 20 months.
The new plant will deliver 95 million cubic feet of nitrogen a day to the state-owned oil company Pemex and the gas will be used to increase capacity in oil extraction at the Pemex Samaria oilfield in the Tabasco region of Mexico.
Praxair signed a 15-year contract with Pemex in March this year to build, own and operate two air separation plants to supply nitrogen for enhanced oil recovery operations at the oilfield.
The start date for the second plant has not yet been announced.
Both plants will feed nitrogen under high pressure to multiple injection points in the Samaria field. The plants' compressors will use natural gas supplied by Pemex.
The project will be carried out by Skanska Latin America which focuses on the construction of infrastructure, energy plants and distribution networks. The contract value amounts to $46m US.
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