TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) today announced that it has been chosen to build, own and operate the Tula – Villa de Reyes pipeline in Mexico. Construction of the pipeline is supported by a 25-year natural gas transportation service contract for 886 million cubic feet a day with the Comisión Federal de Electricidad (CFE), Mexico’s state-owned power company.
TransCanada expects to invest approximately US$550 million in the 36-inch diameter, 420-kilometre (261-mile) pipeline and anticipates an in-service date of early 2018. The pipeline will begin in Tula in the state of Hidalgo, and terminate in Villa de Reyes, in the state of San Luis Potosí, transporting natural gas to power generation facilities in the Central region of the country. The project will interconnect with TransCanada’s Tamazunchale and Tuxpan – Tula pipelines as well as with other transporters in the region.
The Tula – Villa de Reyes Pipeline is the most recent addition to TransCanada’s expanding portfolio in Mexico. TransCanada was awarded the Tuxpan – Tula pipeline in November 2015. By 2018, TransCanada will be operating six major natural gas pipeline systems in Mexico representing an overall investment of approximately US$3.6 billion.
TransCanada operates a network of natural gas pipelines that extends more than 67,000 kilometres (42,000 miles), tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent’s largest providers of gas storage and related services with 368 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns or has interests in over 11,400 megawatts of power generation in Canada and the United States.