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TransCanada to Build $2.1 Billion Gas Pipeline in Mexico

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transcanada-logoTransCanada Corp.’s joint venture with IEnova, Infraestructura Marina del Golfo (IMG), has been chosen to build, own and operate the $2.1 billion (US) Sur de Texas-Tuxpan natural gas pipeline in Mexico. The project will be supported by a 25-year natural gas transportation service contract for 2.6 billion cubic feet a day with the Comisión Federal de Electricidad (CFE), Mexico’s state-owned power company.

RELATED: TransCanada to Build Tula-Villa de Reyes Pipeline in Mexico

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“We are extremely pleased to further our growth plans in Mexico with one of the most important natural gas infrastructure projects for that country’s future,” said Russ Girling, TransCanada’s president and CEO. “This new project brings our footprint of existing assets and projects in development in Mexico to more than $5 billion (US), all underpinned by 25-year agreements with Mexico’s state power company.”

The bid for the Sur de Texas-Tuxpan project was presented in partnership with IEnova, a subsidiary of Sempra Energy. TransCanada will develop, operate and own 60 percent of this project, with IEnova owning 40 percent of it.

TransCanada expects to invest approximately $1.3 billion (US) in the partnership to construct the 42-in. diameter, approximately 800-km (497-mile) pipeline and anticipates an in-service date of late 2018. The pipeline will begin offshore in the Gulf of Mexico, at the border point near Brownsville, Texas and end in Tuxpan, in the state of Veracruz.

RELATED: U.S. Natural Gas Driving Investment on Texas-Mexico Border

In addition to a connection with CENAGAS’s pipeline system in Altamira, the project will interconnect with TransCanada’s Tamazunchale and Tuxpan-Tula pipelines as well as with other transporters in the region.

The Sur de Texas-Tuxpan Pipeline is the most recent addition to TransCanada’s expanding portfolio in Mexico. In the last eight months, TransCanada was awarded the Tuxpan-Tula and the Tula-Villa de Reyes pipelines. Construction activities for these two pipelines are already in progress with the expectation of achieving in-service dates of 2018.

 

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