TransCanada's Mexican subsidiary Transportadora de Gas Natural del Noroeste has been awarded the contract to build, own and operate the El Encino-to-Topolobampo Pipeline in Mexico by Mexico's federal power company, according to a press release from the company Thursday.
TransCanada expects to invest approximately US$1 billion in the Topolobampo Pipeline project, which is supported by a 25-year natural gas transportation service contract with the CFE. The 30-inch diameter pipeline will be approximately 530 kilometers (329 miles) long and have contracted capacity of 670 million cubic feet per day. It is anticipated the project will be in-service in Q3 2016.
"Mexico's government is engaged in a comprehensive plan to expand the nation's electrical grid and generating capacity, and much of that generation will be natural gas-fired," said Russ Girling, TransCanada's president and chief executive officer. "This award is another example of TransCanada's commitment to help develop Mexico's energy infrastructure in a sustainable and cost-efficient manner."