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 cleaner-burning natural gas, there will be additional opportunities for TransCanada," the company said in a statement.
Dow Jones Newswires