TransCanada said Friday that it will build, own and operate
the Tamazunchale Pipeline Extension in Mexico.
Construction of the pipeline is
supported by the award of a 25-year natural
gas transportation service contract by the Comision Federal
de Electricidad (CFE), Mexico's state-owned power company.
TransCanada expects to invest approximately $500 million in the
pipeline and anticipates an in-service date in the first
quarter of 2014.
The project will be 235 kilometers (146
miles) long and have contracted capacity of 630 million cubic
feet a day (MMCf/d).
The pipeline will use a combination of 30- and
36-inch-diameter pipe and have 37 megawatts of installed
compression, company officials said.
The pipeline will originate at the terminus of TransCanada's
existing Tamazunchale Pipeline in the state of San Luis Potosi
and extend through the states of Hidalgo and Queretaro, where
it will connect with Mexico's National Pipeline System and
serve a CFE combined-cycle power generating facility near El
"The Tamazunchale Pipeline Extension demonstrates our
continued commitment to developing Mexico's energy
infrastructure to meet growing requirements for increased natural
gas supply," said Russ Girling, TransCanada's CEO.
"The pipeline represents one of the many low-risk energy
infrastructure opportunities within our existing business lines
that are continuously being developed by our company to help
deliver long-term shareholder value, Girling added.
The Mexican government recently announced a number of
current and expected natural gas infrastructure projects for the country.
This infrastructure allows Mexico to meet growing demand and
supports greenhouse gas reduction initiatives, allowing access
gas as a replacement fuel for heavy oil.
TransCanada noted that it will also pursue future
development opportunities in Mexico.