TransCanada selected to build $500-million Tuxpan Tula gas pipeline in Mexico

Mexico’s federal power company Comision Federal de Electricidad (CFE) has let a contract to TransCanada Corp. to build, own, and operate the Tuxpan Tula pipeline in Mexico. The company will invest $500 million in the project, whereby construction is supported by a 25-year natural gas transportation service contract between the entities.

The 36-in. pipeline, expected to be in service in fourth-quarter 2017, will be 250-km long and have contracted capacity of 886 MMcfd. It will originate in Tuxpan, Veracruz, and extend through the Puebla and Hidalgo states, 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 that will be converted to use gas as their base fuel, the company says. Construction is expected to start in 2016.

TransCanada also owns and operates the Tamazunchale and Guadalajara pipeline systems (OGJ Online, Feb. 24, 2012); and is completing construction of the Topolobampo and Mazatlan pipelines (OGJ Online, Nov. 2, 2012; Nov. 6, 2012). By 2018, with Tuxpan-Tula, TransCanada will have five major pipeline systems, with $3 billion invested in Mexico.

The company adds it “will continue to pursue additional opportunities for new energy infrastructure projects in Mexico going forward.”

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