TransCanada, partners propose Mexico storage, transportation system

TransCanada Corp., Sierra Oil & Gas, and Grupo TMM have proposed to jointly develop an $800-million refined product storage and transportation system to serve rising demand for gasoline, diesel, and jet fuel in central Mexico and surrounding markets.

The project—being touted by the partners as the largest single investment in refined products since the establishment of the Mexico energy reform—will include construction of a marine terminal near Tuxpan, Veracruz, a 100,000-b/d, 265-km product pipeline, and an inland storage and distribution hub in central Mexico.

The marine terminal, with a draft of 14 m, will include four docking positions. The terminal will be pipeline-connected to regional distribution centers and will offer racks for truck loading and barge access to service other Gulf Coast ports.

The pipeline will parallel TransCanada’s recently awarded Tuxpan-Tula natural gas pipeline project (OGJ Online, Nov. 11, 2015).

The inland distribution hub in central Mexico will provide connectivity to much of the Mexico Valley with access to major highways and distribution centers.

The project’s planned in-service date will be based on discussions with contract shippers. TransCanada will hold a 50% interest in the project, with Sierra holding 40% and Grupo TMM holding 10%.

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