Transcanada Awarded Another Mexico Gas Pipeline Project

From Platts

Transcanada Monday said it will build and operate another natural gas pipeline in Mexico, the second project it has announced in the country in the past few days.

The Calgary-based corporation said it will invest an estimated $400 million in the El Oro-to-Mazatlan Pipeline — or Mazatlan Pipeline — which will begin at El Oro and end in Mazatlan, in the state of Sinaloa.

The 24-inch-diameter pipeline will be 413 km long (257 miles) and have contracted capacity of 202,000 Mcf/d. It is expected to be in service in the fourth quarter of 2016, according Transcanada’s statement.

The Mazatlan Pipeline will interconnect with the El Encino-to-Topolobampo Pipeline — or Topolobampo Pipeline — that Transcanada was awarded the contract to build, own and operate last week.

Transcanada’s Mexican subsidiary, Transportadora de Gas Natural del Noroeste, successfully bid on the two projects with the Federal Electricity Commission (CFE), Mexico’s federal power company. Construction of the two new pipelines is supported by 25-year natural gas transportation service contracts with the CFE.

Transcanada plans to invest about $1 billion in the 30-inch-diameter, 530-km (329-mile) Topolobampo line, which will stretch from El Encino in the state of Chihuahua to Topolobampo in Sinaloa on the Pacific Coast.

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