facebook
twitter
search
search

TransCanada to build Mexican gas pipeline

Nov. 2, 2012 at 7:56 AM

CALGARY, Alberta, Nov. 2 (UPI) -- Canadian pipeline company TransCanada said its Mexican subsidiary secured a contract to build and operate a natural gas pipeline in the Latin American country.

The Mexican subsidiary -- Transportadora de Gas Natural del Noroeste -- was awarded the contract by Mexican state power company Comision Federal de Electricidad.

Russ Girling, president and chief executive officer of parent company TransCanada, based in Calgary, said the contract to build, own and operate the pipeline was part of the Mexican government's efforts to expand an electrical grid powered by natural gas.

"This award is another example of TransCanada's commitment to help develop Mexico's energy infrastructure in a sustainable and cost-efficient manner," he said in a statement.

The 329-mile pipeline will stretch between the Mexican states of Chihuahua and Sinaloa. The pipeline has a contracted service volume of 670 million cubic feet of natural gas per day and should go into service by late 2016.

The $1 billion project is supported by a 25-year service contract with CFE.

Like Us on Facebook for more stories from UPI.com  
Related UPI Stories
Latest Headlines
Top Stories
Ford recalls 432,000 North American vehicles over software bug
Compact cannon for British armored vehicles
Volvo unveils new child seat concept
New Zealand military receives medium heavy military trucks
BBC to lay off 1,000 people to make up for $234M in lost revenue