TransCanada awarded another Mexican natural gas pipeline contract

Calgary-based TransCanada Corp. has been awarded a natural gas pipeline contract by Mexican authorities, and says it will invest around US$ 400 million in the 413 km pipeline between El Oro and Mazatlan.

The Mazatlan pipeline, near Mexico’s west coast, will connect with the US$ 1 billion Topolobampo pipeline that TransCanada was awarded last week.

The pipeline giant will build, own and operate the two new pipelines through its Mexican subsidiary, Transportadora de Gas Natural del Noroeste.

Both projects are supported by 25 year natural gas transportation service contracts with Mexico’s federal power company, the Comision Federal de Electricidad (CFE).

“We are pleased to be working with the government of Mexico on new natural gas infrastructure that will bring its cleaner-burning natural gas to businesses and residents,” said Russ Girling, TransCanada President and CEO.

“These new projects build on our experience developing safe and reliable pipelines in Mexico and across North America.”

With one of North America’s largest networks of gas and oil pipelines, TransCanada’s portfolio already includes two natural gas lines operating in central Mexico. The company built, owns and operates the Guadalajara and Tamazunchale natural gas pipelines in central Mexico and an extension on the Tamazunchale pipeline is on its way.

In addition to its vast network of some 68 500 km of natural gas pipelines, the company is also developing one of North America’s largest oil delivery systems, including the much contested Keystone XL pipeline, designed to transport Canadian oilsands crude to refineries on the Texas Gulf Coast.

Edited from various sources by Cecilia Rehn.

Read the article online at: https://www.worldpipelines.com/business-news/05112012/transcanada_awarded_another_mexican_natural_gas_pipeline_contract/