TransCanada Corporation today announced that it has been chosen to build, own and operate the Tuxpan-Tula Pipeline in Mexico. Construction of the pipeline is supported by a 25-year natural gas transportation service contract with the Comisión Federal de Electricidad, Mexico’s state owned power company.
TransCanada expects to invest approximately $500 mln in the 36-inch diameter pipeline and anticipates an in-service date in the fourth quarter of 2017. The pipeline will be approximately 250 kilometres long and have contracted capacity of 25 millions cubic meters per day.
The pipeline will originate in Tuxpan in the state of Veracruz and extend through the states of Puebla and Hidalgo, supplying natural gas to CFE combined-cycle power generating facilities in each of those jurisdictions as well as to the central and western regions of Mexico.The pipeline will serve new power generation facilities as well as those currently operating with fuel oil which will be converted to use natural gas as their base fuel. Construction is expected to start in 2016.
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