TransCanada Corp. will build, own and operate the Tuxpan-Tula Pipeline in Mexico, the company said Nov. 11.
Construction is supported by a 25-year natural gas transportation service contract with the Comisión Federal de Electricidad (CFE), Mexico's state-owned power company, TransCanada added. Construction is expected to start in 2016.
The pipeline will begin in Tuxpan, in Veracruz, and pass through Puebla and Hidalgo states, providing natural gas to facilities there and in the central and western regions of Mexico.
TransCanada will invest about US$500 million in the 150-mile, 36-inch pipeline, whose contracted capacity is 886 million cubic feet per day. Its in service date is scheduled for the fourth quarter of 2017.
New power generation facilities will be served, and so will fuel oil-based facilities, which will convert to natural gas usage.
TransCanada also owns and operates the Tamazunchale and Guadalajara pipelines and is completing the Topolobampo and Mazatlán pipelines.
TransCanada Corp. is based in Calgary, Alberta.
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