TransCanada and its joint venture with Sempra Energy’s subsidiary IEnova and Infraestructura Marina del Golfo (IMG) has secured a contract for the $2.1bn Sur de Texas-Tuxpan offshore natural gas pipeline in Mexico.
Under the contract, TransCanada and its partners will build, own and operate the 800km pipeline, which is the recent addition to TransCanada’s expanding portfolio in Mexico.
The latest project will be supported by a natural gas transportation service contract signed for a period of 25 years for 2.6 billion cubic feet a day with Mexico’s state-owned power company Comisión Federal de Electricidad (CFE).
TransCanada president and CEO Russ Girling said: "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.
"This new project brings our footprint of existing assets and projects in development in Mexico to more than $5bn, all underpinned by 25-year agreements with Mexico’s state power company."
TransCanada submitted the bid for Sur de Texas-Tuxpan project in partnership with IEnova and will develop, operate and own 60% of it, while IEnova will own 40%.
The company intends to invest $1.3bn in the partnership to build the 42in diameter pipeline.
Sur de Texas-Tuxpan is expected to be operational in late-2018 and will begin offshore in the Gulf of Mexico, at the border point near Brownsville, Texas, and end in Tuxpan, Veracruz.
The project will link with TransCanada’s Tamazunchale and Tuxpan-Tula pipelines, as well as with other transporters in the region.
Construction activities for TransCanada’s Tuxpan-Tula and the Tula-Villa de Reyes pipelines are already in progress and are expected to be operational in 2018.