Coastal Contracts secures US$1.14bil Pemex gas project in Mexico


KUALA LUMPUR: Coastal Contracts Bhd has secured an engineering, procurement and construction (EPC) and services contract in Mexico with Petróleos Mexicanos (Pemex), with an aggregate value of approximately US$1.14bil (RM4.64bil).

In a filing with Bursa Malaysia, Coastal Contracts said the contract, signed on Dec 19, 2025 (Mexico time), was awarded to a consortium led by Coastal’s Mexican joint-venture company, Coastoil Dynamic SA de CV (CD), together with Sistemas Integrales de Compresion SA de CV and Nuvoil SA de CV.

CD is designated as the consortium leader and is responsible for contract administration, billing and receipt of payments, with all financial interest and economic benefits arising from the contract fully attributable to CD.

Under the agreement, the consortium will undertake the EPC of a new gas sweetening plant with a processing capacity of 150 mmscfd at the Ixachi Field, as well as the design, construction and commissioning of related permanent infrastructure.

The contract also covers the provision of gas sweetening services for a period of eight years and 10 months.

In addition, the scope includes the construction of a new separation plant capable of handling up to 900 mmscfd of gas and 56,000 barrels per day of oil, and the installation of a new condensate pipeline for the transportation of oil condensate.

Construction periods for the various facilities range from 300 to 517 days, while the service period will commence upon completion and acceptance of the gas sweetening plant.

Under the contract, Pemex is required to establish a trust account within 30 business days from the signing date to facilitate payment, with funds sourced from the sale of hydrocarbons produced from the Ixachi Field.

“The contract will not have any effect on the issued and paid-up capital of Coastal.

“However, the contract is expected to contribute positively to theearnings and net assets of Coastal for the financial year ending Dec 31, 2026 and the financial periods thereafter for the duration of the contract,” Coastal Contracts said.

Executive chairman Ng Chin Heng said the contract win reflects Pemex’s continued confidence in the group’s technical capabilities, operational performance and long-standing partnership with Nuvoil in Mexico.

“With this contract win, Coastal Group further strengthens its strategic role in supporting Pemex’s production value chain and Mexico’s broader energy development objectives.

“We remain committed to delivering reliable, high-quality solutions that contribute to the long-term success of the Ixachi Field.”

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