TransCanada wins Mexico pipeline operating rights

TransCanada Corp. has the won rights to develop and operate a natural gas pipeline in central Mexico, beating a subsidiary of Sempra Energy that was disqualified from bidding.

TransCanada unit Transportadora de Gas Natural de la Huasteca won the auction with a bid of US$336 million, the lowest of three companies that participated, state-owned utility Comision Federal de Electricidad (CFE) said at the end of last week.

TransCanada, which recently announced plans to sell as much as 49% of its Mexican assets, now has six projects in the country.

CFE disqualified a bid from Infraestructura Energetica Nova SA, a Sempra unit known as Ienova. It was the third time since March 16 that an Ienova bid was thrown out for failing to meet requirements to operate the pipeline.

The 420 km pipeline will supply gas to CFE’s power plants in the central states of Hidalgo and San Luis Potosi.

The 261 mile pipeline project is expected to begin operation in early 2018.

Edited from various sources by Elizabeth Corner

Sources: The Globe and Mail, Seeking Alpha, Sonoran Weekly Review

Read the article online at: https://www.worldpipelines.com/business-news/11042016/transcanada-wins-mexico-pipeline-operating-rights/