By JUDY MCKINNON
TransCanada Corp. said Thursday it has received a $1 billion
contract from Mexico's federal power company to build a
329-mile natural-gas pipeline.
The Calgary, Alberta-based pipeline company said the deal
includes a 25-year natural-gas transportation service contract
with Mexico's Comision Federal de Electricidad.
It said the El Encino-to-Topolobampo pipeline will have
contracted capacity of 670 million cubic feet a day and is
expected to be in service in the third quarter of 2016.
The pipeline will interconnect with other pipelines expected to
be built to support Mexico's expansion of its electrical grid and
generating capacity, TransCanada said.
"As Mexico makes the transition from fuel oil to
gas, there will be additional opportunities for
TransCanada," the company said in a statement.
Dow Jones Newswires