TransCanada's joint venture with Sempra Energy subsidiary IEnova was awarded a contract to build, own and operate the US$2.1 billion Sur de Texas-Tuxpan natural gas pipeline that will begin offshore Mexico near Brownsville, Texas, and end in Tuxpan, Veracruz.
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Image from TransCanada. |
The project will be supported by a 25-year natural gas transportation service contract for 2.6 Bcf/d with the Comisión Federal de Electricidad (CFE), Mexico's state-owned power company.
"We are extremely pleased to further our growth plans in Mexico with one of the most important natural gas infrastructure projects for that country's future," said Russ Girling, TransCanada president and CEO. "This new project brings our footprint of existing assets and projects in development in Mexico to more than $5 billion, all underpinned by 25-year agreements with Mexico's state power company."
The bid for the Sur de Texas-Tuxpan project was presented in partnership with IEnova, a subsidiary of Sempra Energy. TransCanada will develop, operate and own 60% of this project, with IEnova owning the remaining 40%.
TransCanada expects to invest approximately $1.3 billion in the partnership to construct the 42in diameter, approximately 800km (497mi) pipeline and anticipates an in-service date of late 2018. The pipeline will begin offshore in the Gulf of Mexico, at the border point near Brownsville, Texas and end in Tuxpan, in the state of Veracruz.
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