TransCanada is ready to invest $2.1bln in Mexico

After the rejection of Keystone XL pipeline by Obama administration, TransCanada Corp. said it would build and operate a $2.1 billion natural gas pipeline in Mexico, as the Canadian company ramps up in the Latin American country at a time when its key projects closer to home are facing delays.
TransCanada said on June 13 that the Sur de Texas-Tuxpan Pipeline project would be built through a joint venture with a unit of Sempra Energy, and it would be backed by a 25-year transportation service contract with Mexico’s state-owned power company. TransCanada, which will own a 60% stake in the 800 kilometer (497 mile) pipeline and be its operator, will invest $1.3 billion in the project. Sempra’s unit IEnova will hold the remaining stake.
Spectra Energy Corp. said on June 13 that its unit won a contract to build and operate a $1.5 billion natural gas pipeline in Texas, which would connect to the Sur de Texas-Tuxpan Pipeline in Mexico.
The unit, Valley Crossing Pipeline LLC, will build and operate the 1 billion cubic feet per day pipeline originating at Nueces County, Texas, and extending to Brownsville, Texas. The Sur de Texas-Tuxpan Pipeline, which is expected to be in service in late 2018, is the largest of three new Mexican projects recently announced by TransCanada.
Construction has already begun on the $500 million Tuxpan-Tula Pipeline and the $550 million Tula-Villa de Reyes lines.