Mexican pipeline extension construction contract awarded

The project will be 235 km long and have a contracted capacity of 630 MMcf/d of gas. The pipeline will use a combination of 30 and 36 inch diameter pipe and have 37 MW of installed compression.

The pipeline will originate at the terminus of TransCanada’s existing Tamazunchale Pipeline in the state of San Luis Potosi, and extend through the states of Hidalgo and Queretaro. From there, it will connect with Mexico’s National Pipeline System and serve a ComisiÌ_n Federal de Electricidad combined-cycle power generating facility near El Sauz, Queretaro.

The Mexican Government recently announced a number of current and expected natural gas infrastructure projects for the country. This infrastructure allows Mexico to meet growing demand and supports greenhouse gas reduction initiatives, allowing access to natural gas as a replacement fuel for heavy oil.

TransCanada expects to invest approximately $US500 million in the pipeline, and anticipates an in-service date in the first quarter of 2014.

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