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TransCanada to build $1 billion pipeline in Mexico

Natural gas pipeline will extend 530 kilometres and carry up to 670 million cubic feet of natural gas per day.


November 1, 2012
by The Canadian Press

CALGARY—TransCanada Corp. will invest $1 billion in a new natural gas pipeline in Mexico.

The Calgary-based pipeline giant has been awarded a contract to build, own and operate the pipeline by Mexico’s federal power company, the Comision Federal de Electricidad (CFE).

The 530-kilometre-long El Encino-to-Topolobampo pipeline will have a contracted capacity of 670 million cubic feet per day and is supported by a 25-year natural gas transportation services contract.

“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 CEO Russ.

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

Girling said TransCanada is bidding on a number of CFE proposals. The company has already built and is operating the Guadalajara and Tamazunchale pipelines and will soon break ground on a Tamazunchale pipeline extension.

TransCanada operates a network of natural gas pipelines that extends more than 68,500 kilometres and tap into virtually all major gas supply basins in North America. It is also developing one of North America’s largest oil delivery systems.

©The Canadian Press