Valley Crossing Pipeline, a subsidiary of Spectra Energy, has secured a $1.5bn project from Mexico’s state-owned utility Comisión Federal de Electricidad (CFE) to address the need for natural gas in the country.
The 168-mile, Nueces-to-Brownsville pipeline project in Texas, US, is aimed at providing natural gas transportation services beginning in 2018.
Spectra Energy US Transmission and Storage president Bill Yardley said: "Spectra Energy is pleased to have secured the bid to build and operate this critical infrastructure, which will provide clean-burning and reliable natural gas to support Mexico as its electric generators shift away from fuel oil and imported LNG.
"Successfully securing this project adds to our already-strong asset portfolio, connects us to another key demand-pull market, and brings us closer to our goal of securing $35bn in capital expansion projects by the end of this decade, with approximately $20bn either in execution or in service since 2013."
Under the contract terms, Valley Crossing will construct and operate a header system of more than 5 billion cubic feet per day (Bcf/d) near the Agua Dulce Hub in Nueces County, Texas.
In addition a 2.6 Bcf/d pipeline will be built, which will originate at that header and extend to Brownsville, Texas.
Nueces to Brownsville gas pipeline will transport natural gas from the South of Texas and will help to address the needs of natural gas in the Eastern, Central and Western regions of Mexico.
The project consists of the engineering, procurement, acquisition of real estate rights, permits and governmental approvals, funding, construction, operation and maintenance of a 250km pipeline with a capacity of 2,600 million standard cubic feet per day.
