Mexico gas pipeline contract awarded

Construction of the pipeline is supported by a 25-year natural gas transportation service contract with the ComisiÌ_n Federal de Electricidad (CFE), Mexico’s state-owned power company, and is expected to start in 2016.

TransCanada expects to invest approximately US$500 million in the 250 km, 36 inch diameter pipeline and anticipates an in-service date in the fourth quarter of 2017. The pipeline will have contracted capacity of 886 MMft3/d.

The pipeline will originate in Tuxpan in the state of Veracruz on the Gulf of Mexico, and extend through the states of Puebla and Hidalgo, supplying natural gas to CFE combined-cycle power generating facilities in each of those jurisdictions as well as to the central and western regions of Mexico.

The pipeline will serve new power generation facilities as well as those currently operating with fuel oil, which will be converted to use natural gas as their base fuel.

TransCanada assets in Mexico

TransCanada also owns and operates the Tamazunchale and Guadalajara pipeline systems in Mexico, and is completing construction of the Topolobampo and MazatlÌÁn pipelines.

By 2018, with the Tuxpan-Tula Pipeline, TransCanada will have five major pipeline systems, with approximately US$3 billion invested in Mexico.

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