A consortium led by ICA Fluor has begun construction of a cryogenic natural gas processing plant in Mexico, state oil company Petroleos Mexicanos said Monday.

The plant will take two years to build and process 200 million cubic feet of gas coming from Pemex's natural gas fields in the Poza Rica area of northern Mexico.

ICA Fluor is a joint venture of Mexico's Empresas ICA (ICA) and Fluor Corp (FLR). Linde Process Plants is also part of the consortium.

The plant will separate products such as propane and butane from natural gas, and cost about $270 million to build.

-By Peter Millard, Dow Jones Newswires; 5255-5001-5724; peter.millard@dowjones.com