TransCanada's joint venture with IEnova, Infraestructura Marina del Golfo (IMG) was awarded a contract to build, own and operate the US$2.1 billion Sur de Texas-Tuxpan natural gas pipeline in Mexico.
TransCanada said it expects to invest $1.3 billion in the partnership to construct the 42-inch diameter, 800 km pipeline and anticipates an in-service date of late 2018. The pipeline will begin offshore in the Gulf of Mexico, at the border point near Brownsville, Texas and end in Tuxpan, in the state of Veracruz.
The project will be supported by a 25-year natural gas transportation service contract for 2.6 billion cubic feet a day with the Comisión Federal de Electricidad (CFE), Mexico's state-owned power company.
"We are extremely pleased to further our growth plans in Mexico with one of the most important natural gas infrastructure projects for that country's future. This new project brings our footprint of existing assets and projects in development in Mexico to more than US$5 billion, all underpinned by 25-year agreements with Mexico's state power company," said Russ Girling, TransCanada's president and chief executive officer.
In addition to a connection with CENAGAS's pipeline system in Altamira, the project will interconnect with TransCanada's Tamazunchale and Tuxpan-Tula pipelines that are under construction and are expected to come online in 2018.
TransCanada will develop, operate and own 60 per cent of this project, with IEnova owning 40 per cent of it.