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TransCanada lands 2nd Mexico pipeline deal

Nov. 6, 2012 at 6:55 AM

CALGARY, Alberta, Nov. 6 (UPI) -- Canadian pipeline company TransCanada announced a subsidiary won a contract to build and operate a 257-mile natural gas pipeline in Mexico.

Russ Girling, president and chief executive officer at TransCanada, said experience counts when it comes to working in North America.

"We are pleased to be working with the government of Mexico on new natural gas infrastructure that will bring its cleaner-burning natural gas to businesses and residents," he said in a statement.

TransCanada secured the contract through a 25-year natural gas service deal with Mexican state power company Comision Federal de Electricidad. The pipeline, which could connect to existing networks, will stretch 257 miles from central Mexico to the country's west coast. It's designed to carry as much as 202 million cubic feet of natural gas per day and go into service by late 2016.

TransCanada also secured a similar deal for a 329-mile pipeline that 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.

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