Social Integration Facilitates Pipeline Construction

Q: GDI participated in the La Laguna-Villa de Reyes pipeline project. How did the process develop?

A: We have participated in the development of the 400km Cuidad Juarez-Chihuahua and the 450km Encino-La Laguna pipelines. Our next projects will be the construction of the La Laguna-Aguascalientes and the Aguascalientes-Guadalajara pipelines, which have a total length of 470km. When examining the first bids for CFE’s electricity auctions, it is clear that CAPEX and NPDs were extremely high, although it was the appropriate price for the time. For the last four years, our team has learned how to become more efficient and has been able to translate this into cost reductions of up to 60 percent in some cases. It is possible that the price of these projects may even be lower in the end, despite right of way issues. We are making processes extremely efficient and doing more at a faster pace. Many companies are focusing on cost control, but in the wrong way. Our expertise and knowledge allows us to control costs in a critical way, traveling the country constantly to understand and participate in the projects. The industry must also nurture the technological thinking of Generation X because with the technology available today, young workers can produce a report at a fraction of the time it would otherwise take.

Q: What have been your experiences regarding security problems?

A: Security is intrinsically linked with communities. At the moment Mexico’s security is an issue not only in locations with pipelines but across the entire country. Throughout the development of a project, building a relationship with the community is crucial and in high-risk zones it may even increase the complexity of the project. It is important as a contractor to find a balance between the execution of the project and having the least impact possible on the surrounding communities. GDI purchased 250 containers to build mobile camps with all basic services for our teams as a way of guaranteeing the integrity of the environment. We implemented rules that raised awareness among our teams about the importance of respecting local communities, the people and the environment. Compliance with these rules created a mutually beneficial situation since the projects were finished on time and the locals perceived our presence positively, as a job provider, making it a safer working environment for our employees. This formula has been successful in our projects in Chihuahua, Coahuila, Sinaloa, Sonora and Tamaulipas.

Q: How has GDI worked with ejidos and right of way issues during its infrastructure operations?

A: At GDI we have a team of 150 people managing communities and permitting falls under its scope. This team is in charge of creating dialogue between both parties to give a voice to the communities and communicate the solutions the operator will then provide. We always must ensure that communities see us as a visitor bringing value and work to the region. This is an area where contractors, operators and governments must work together to change the mindset across Mexico. It is important to remember that the land belongs to the communities and it is positive that reforms take this into account.

Q: What role will GDI play in the development of Mexico’s midstream energy sector?

A: At the moment, Mexico has 19,000km of pipelines and to the 40,000km that Texas has, it is clear we must create teams of young people who are able to work quickly and efficiently to guarantee that projects will be executed in the shortest time possible. GDI is developing a team of 70-100 people with a common goal, which is reaching a point where we can jump from one project to another seamlessly. The company also is looking to become more involved in the development of railroads and it will be crucial to create an alliance with a specialized company to build faster and more efficient railroads. With energy infrastructure and the Energy Reform, there has been a learning curve in which we have adapted to the quotation requests for solar and wind farms. We want to gain more knowledge about the mining sector and apply that to wind and solar projects since these require a great amount of land preparation in short periods of time. We also are evaluating opportunities in the expansion of ports and marine works because our team already has ample experience in these areas. GDI is a young company that is an expert in its field and not afraid of innovation or change.