TransCanada’s Mexico-based subsidiary, Transportadora de Gas Natural del Noroeste, has won a contract to build a $1bn natural gas pipeline in Mexico starting in El Encino, Chihuahua, and terminating in Topolobampo, Sinaloa.
Under the terms of the contract commissioned by Comisión Federal de Electricidad (CFE), Mexico’s federal power company, Transportadora de Gas Natural del Noroeste will build, own and operate the El Encino-to-Topolobampo Pipeline (Topolobampo Pipeline).
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TransCanada president and chief executive officer, Russ Girling, said Mexico’s government intends to expand the nation’s electrical grid and generating capacity.
"This award is another example of TransCanada’s commitment to help develop Mexico’s energy infrastructure in a sustainable and cost-efficient manner," said Girling.
"This project is a response to a CFE invitation to bid. As Mexico makes the transition from fuel oil to cleaner-burning natural gas, there will be additional opportunities for TransCanada.
"These opportunities are consistent with our strategy to build long life infrastructure, underpinned with long-term contracts."
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By GlobalDataThe 530km Topolobampo Pipeline project will have a 30in diameter and a contracted capacity of 670 million cubic feet per day.
It will be supported by a 25-year natural gas transportation service contract with the CFE and will be in service in the third quarter of 2016.
The Topolobampo Pipeline interconnects with other pipelines that will be built after a separate bidding process by the CFE.
Image: TransCanada has won a contract to build a $1bn natural gas pipeline in Mexico. Photo: GNU.
