TransCanada selected to build $500m natural gas pipeline in Mexico

Power company Comisión Federal de Electricidad (CFE) has selected TransCanada to build own and operate the $500m natural gas Tuxpan-Tula Pipeline in Mexico.

TransCanada president and CEO Russ Girling said: "The Tuxpan-Tula Pipeline demonstrates our continued commitment to developing Mexico’s energy infrastructure to meet the need for increased natural gas supply."

The 36-inch diameter pipeline will be about 250km long and has contracted capacity of 886 million cubic feet a day (MMcf/d).

Originating in Tuxpan in the state of Veracruz, the pipeline will extend through the states of Puebla and Hidalgo and supply gas to CFE combined-cycle power generating facilities as well as to the central and western regions of Mexico.

The Tuxpan Tula Pipeline, which will complement TransCanada’s Mexican business, will serve new power generation facilities in addition to those that are operating with fuel oil at present.

Construction of the pipeline is expected to commence in 2016.

Currently, the company owns and operates the Tamazunchale and Guadalajara pipeline systems and is nearing the completion of the Topolobampo and Mazatlán pipelines.

With the new Tuxpan-Tula Pipeline, TransCanada will have five major pipeline systems, with about $3bn invested in the country by 2018.

Recently, TransCanada urged the US State Department to put on hold its review of the presidential permit application for the $8bn Keystone XL pipeline project.

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Image: Keystone 30in (760mm) pipeline (phase 1) near Swanton in Nebraska (2009). Photo: courtesy of shannonpatrick17