TransCanada to Build $1 Billion Pipeline in Mexico

By Admin
CALGARY, Alberta – November 1, 2012 – TransCanada Corporation (TSX, NYSE: TRP) (TransCanada) today announced that its Mexican subsidiary...

 

CALGARY, Alberta – November 1, 2012 – TransCanada Corporation (TSX, NYSE: TRP) (TransCanada) today announced that its Mexican subsidiary, Transportadora de Gas Natural del Noroeste, has been awarded the contract to build, own and operate the El Encino-to-Topolobampo Pipeline (Topolobampo Pipeline) in Mexico by the Comisión Federal de Electricidad (CFE), Mexico’s federal power company.

TransCanada expects to invest approximately US$1 billion in the Topolobampo Pipeline project, which is supported by a 25-year natural gas transportation service contract with the CFE. The 30-inch diameter pipeline will be approximately 530 kilometres (329 miles) long and have contracted capacity of 670 million cubic feet per day.  It is anticipated the project will be in-service in the third quarter of 2016.

“Mexico’s government is engaged in a comprehensive plan to expand the nation’s electrical grid and generating capacity, and much of that generation will be natural gas-fired,” said Russ Girling, TransCanada’s president and chief executive officer.  “This award is another example of TransCanada’s commitment to help develop Mexico’s energy infrastructure in a sustainable and cost-efficient manner.”

SEE OTHER TOP STORIES IN THE ENERGY DIGITAL CONTENT NETWORK

Keystone Oil Pipeline: Why There Shouldn't be an XL

Iraq Oil Output to Triple by 2035—Mission Accomplished?

Read more in Energy Digital's October Issue

The Topolobampo Pipeline begins in El Encino, in the state of Chihuahua, and terminates in Topolobampo, in the state of Sinaloa, interconnecting with other pipelines that are expected to be built as a result of separate bid processes by the CFE.   

“This project is a response to a CFE invitation to bid. As Mexico makes the transition from fuel oil to cleaner-burning natural gas, there will be additional opportunities for TransCanada,” Girling said. “These opportunities are consistent with our strategy to build long life infrastructure, underpinned with long-term contracts.”

Girling said TransCanada has welcomed the opportunity to bid on a number of CFE pipeline proposals through a transparent, fair and comprehensive process. TransCanada has already built and is operating the Guadalajara and Tamazunchale pipelines and will soon break ground on a Tamazunchale Pipeline Extension.

SOURCE TransCanada

 

DOWNLOAD THE ENERGY DIGITAL IPAD APP

 

 

Share

Featured Articles

Alfa Laval to supply world’s largest green hydrogen plant

The facility is being built in NEOM, the US$500bn futuristic city being developed in Saudi Arabia

COP27 agrees to climate compensation fund

The deal is said to be a historic first in acknowledging the vast inequities of the climate crisis

North America's natural gas can help mitigate energy crisis

In the effort towards decarbonisation, North America could be a key player in providing affordable natural gas, addressing energy security issues

COP27: Egypt and Norway to build 100MW green hydrogen plant

Renewable Energy

Renewable energy company Masdar opens office in Saudi Arabia

Renewable Energy

Ørsted closes US$140m transaction with ECP for US portfolio

Renewable Energy