Preliminary engineering work has begun on a 517 MW gas-fired cogeneration project in Mexico.

The $950 million Salina Cruz project is a joint venture undertaken by PMX Cogeneracion, a subsidiary of state-owned oil firm Pemex, along with Enel Green Power and Abengoa.

The plant will be located close to Salina Cruz in the state of Oaxaca, at the Antonio Dovalí Jaime refinery (pictured) owned by Pemex Refinación, another Pemex subsidiary. Power and steam from the plant will be supplied to the refinery, with any excess power sold to the grid.

The project was first announced in May 2015.

Abengoa said the project’s objective is ‘to develop a plant that generates competitive, stable and sustainable power, helping the Mexican government to fulfil its commitment to reduce greenhouse gas emissions by around 50% by 2050.

‘Furthermore, the construction, operation and maintenance of this plant will act as a catalyst for the socio-economic development of the region, creating direct jobs and a large amount of indirect employment, generating a network of services that will support economic growth in the area,’ the company added.