PASO DEL NORTE PIPELINE GROUPPRELIMINARY MARKET ANALYSIS

OCTOBER 2014

PRELIMINARY MARKET

ANALYSIS

THE STATE OF CHIHUAHUA, MEXICO

ACTUAL PIPELINE NETWORK IN CHIHUAHUA

FIRST STAGEFLORIDA-

NUEVOCASAS

GRANDES

SECOND STAGE

NUEVOCASAS

GRANDES-

CUAUHTEMOC

FIRST STAGE, NUEVO CASAS GRANDES

MARKET POTENTIAL FIRST STAGE

INDUSTRIAL AND AGRO MARKET

WATER PUMPING FOR AGRICULTURA WELLSFREEZE PROTECTION

GREENHOUSESFOOD PROCESSING INDUSTRY

FRUIT STORAGEAUTOMOTIVE ASSEMBLY

PLANTS

(ONE EXISTING INDUSTRIAL PARK) N.C. GRANDES.

MARKET POTENTIAL FIRST STAGE

RESIDENTIAL MARKET

POPULATION 104,000 IN 2010

MAIN CENTERS. NUEVO CASAS GRANDES

MEXICAN/ MORMON POPULATION

NUEVO CASAS GRANDES

SECOND STAGECUAUHTEMOC

MARKET POTENTIAL SECOND STAGE

INDUSTRIAL AND AGRO MARKET

WATER PUMPING FOR AGRICULTURA WELLS

FREEZE PROTECTIONGREENHOUSES

FOOD PROCESSING INDUSTRY (DAIRY PROCESSING)

AUTOMOTIVE PARTS PLANTSPAPER PLANTS

METALMECHANIC INDUSTRYFRUIT STORAGE C.A.

ELECTRONIC INDUSTRYIRON FOUNDRY

(ONE EXISTING INDUSTRIAL PARK AND CORREDOR COMERCIAL MENONITA)

MARKET POTENTIAL SECOND STAGE

RESIDENTIAL MARKET

POPULATION 222,000 IN 2010

MAIN CENTERS. CUAUHTEMOC CITY

MEXICAN/ MENONNITE POPULATION

CD. CUAUHTEMOC

POTENTIAL DEMANDINVESTMENT ATTRACTIONTHE MOST IMPORTANT MARKET DEMAND WILL COME FROM A STRATEGY OF INVESTMENT ATTRACTION OF

ENERGY INTENSIVE COMPANIES

PRODUCTIVITY POTENTIAL•MEXICAN COMPETITIVE DIRECT LABOR

•COMPETITIVE TECHNICAL AND MANAGEMENT WORK FORCE

•CLOSE CONNECTION TO US AND MEXICAN MARKETS

•AVAILABILITY OF NATURAL GAS AT COMPETITIVE PRICES

INDUSTRIAL SEGMENTS TO BE DEVELOPED

•UREA PLANTS•ELECTRICITY

PLANTS•GREENHOUSES

•INDUSTRIAL FOUNDRY ALUMINUM CASTING

•STEEL CASTING•FOOD

PROCESSING

INDUSTRIAL PARKSACTUAL AND POTENTIAL

•PUERTO PALOMAS (ACCESS TO RAIL LINES IN THE US)•NUEVO CASAS

GRANDES (PAQUIME)•RUBIO

•CUAUHTEMOC•ANAHUAC (ACCES TO

RAIL LINES)•LA JUNTA (ACCES TO

RAIL LINES)

RESIDENTIALMARKET

INDUSTRIALPARKS

AND ZONES

INDUSTRIAL PARKS IN OPERATION IN THE ROUTE OF PASO

NORTE PIPELINE

N. CASAS GRANDES CORREDOR COMERCIAL

ANAHUACCUAUHTEMOC

POTENTIAL INDUSTRIAL PARKS FOR ENERGY INTENSIVE OPERATIONS IN THE

ROUTE OF PASO NORTE PIPELINE

PUERTO PALOMAS RUBIO. MENONITE ZONE

LA JUNTA, ACCES TO RAIL

AGROWATER

PUMPING

MARKETPOTENTIAL

Chihuahua Study

A final market potential will be defined after developing comprehensive

market study