TransCanada Corp. has been chosen to build, own and operate the Tula-Villa de Reyes natural gas pipeline in Mexico. The pipeline is supported by a 25-year natural gas transportation service contract for 886 million cubic feet per day (MMcf/d) with the Comisión Federal de Electricidad (CFE), Mexico’s state-owned power company.
“The Tula-Villa de Reyes Pipeline complements our existing pipeline network in Mexico and furthers our strategy of owning and operating highly contracted and regulated assets that generate stable and predictable earnings and cash flow streams,” said Russ Girling, TransCanada’s president and CEO.
TransCanada expects to invest approximately $550 million (USD) in the 36-in. diameter, 420-km (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. It will transport 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. The company was awarded the Tuxpan-Tula pipeline in November 2015. By 2018, The company will be operating six major natural gas pipeline systems in Mexico representing an overall investment of approximately $3.6 billion.Tags: Mexico, natural gas, TransCanada, TransCanada Corp