ATCO and CYDSA to Develop Midstream Opportunities in Mexico

ATCO Ltd. and CYDSA S.A.B. de C.V. have signed a Memorandum of Understanding (MOU) to work together to explore and develop midstream opportunities in Mexico’s oil and gas industry. The initial focus will be on underground hydrocarbon storage in both salt cavern formations and depleted reservoirs, and will also include opportunities in gas gathering and processing, as well as natural gas liquids (NGL) extraction and fractionation.

“This MOU presents us with an opportunity to expand our integrated suite of products and services in a growing strategic market,” said George Lidgett, Managing Director, Pipelines & Liquids with ATCO. “Our decades of experience developing customer-focused midstream and energy storage services, paired with CYDSA’s invaluable local expertise, should enable us to identify targeted opportunities for growth in Mexico.”

CYDSA has more than 50 years of experience in mining and exploring salt formations in the Coatzacoalcos region, serving both the consumer and industrial sectors. The company has recently started developing salt caverns in the formation for safe use in hydrocarbon storage, the first project of its kind in Mexico and Latin America. In November 2017, in cooperation with PEMEX, the state-owned oil company of Mexico, the initial operation to store liquefied petroleum gas went onstream.

ATCO also brings extensive experience developing and managing underground storage facilities, both in salt cavern formations and depleted reservoirs. The company has a long history of developing and reliably operating a variety of energy assets, including gas gathering and processing, NGL extraction, as well as providing transportation and logistics services.

“We very much look forward to cooperating with ATCO,” said Tomás González Sada, Chairman of the Board & Chief Executive Officer with CYDSA. “The cooperation will benefit the Mexican economy and improve the competitiveness of many industries through the reliable delivery of oil and gas products to the benefit of producers and consumers.”

Related News

Comments

{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}