TransCanada Corp. will build, own and operate the Tuxpan-Tula Pipeline in Mexico, the company said Nov. 11.
Construction is supported by a 25-year natural gas transportation service contract with the Comisión Federal de Electricidad (CFE), Mexico's state-owned power company, TransCanada added. Construction is expected to start in 2016.
The pipeline will begin in Tuxpan, in Veracruz, and pass through Puebla and Hidalgo states, providing natural gas to facilities there and in the central and western regions of Mexico.
TransCanada will invest about US$500 million in the 150-mile, 36-inch pipeline, whose contracted capacity is 886 million cubic feet per day. Its in service date is scheduled for the fourth quarter of 2017.
New power generation facilities will be served, and so will fuel oil-based facilities, which will convert to natural gas usage.
TransCanada also owns and operates the Tamazunchale and Guadalajara pipelines and is completing the Topolobampo and Mazatlán pipelines.
TransCanada Corp. is based in Calgary, Alberta.
Recommended Reading
Canadian Natural Resources Boosting Production in Oil Sands
2024-03-04 - Canadian Natural Resources will increase its quarterly dividend following record production volumes in the quarter.
E&P Earnings Season Proves Up Stronger Efficiencies, Profits
2024-04-04 - The 2024 outlook for E&Ps largely surprises to the upside with conservative budgets and steady volumes.
Kissler: OPEC+ Likely to Buoy Crude Prices—At Least Somewhat
2024-03-18 - By keeping its voluntary production cuts, OPEC+ is sending a clear signal that oil prices need to be sustainable for both producers and consumers.
Oil and Gas Chain Reaction: E&P M&A Begets OFS Consolidation
2024-04-26 - Record-breaking E&P consolidation is rippling into oilfield services, with much more M&A on the way.
U.S. Shale-catters to IPO Australian Shale Explorer on NYSE
2024-05-04 - Tamboran Resources Corp. is majority owned by Permian wildcatter Bryan Sheffield and chaired by Haynesville and Eagle Ford discovery co-leader Dick Stoneburner.