Planned to be commissioned in the fourth quarter of 2017, the pipeline runs from Tuxpan in the state of Veracruz and extends through the states of Puebla and Hidalgo.
The 36-inch 250km-long pipeline is supported by a 25-year natural gas transportation service contract with the Mexico’s state owned power company Comisión Federal de Electricidad (CFE).
As per the deal, the pipeline will deliver 886 million cubic feet a day (MMcf/d) of natural gas to CFE’s combined-cycle power generating facilities located in Puebla and Hidalgo.
Besides serving new power generation facilities, the pipeline will deliver natural gas to the central and western regions of Mexico.
TransCanada plans to commence construction of the pipeline project in 2016.
TransCanada president and CEO Russ Girling said: "The Tuxpan-Tula Pipeline demonstrates our continued commitment to developing Mexico’s energy infrastructure to meet the need for increased natural gas supply."
The Tuxpan-Tula Pipeline is expected to help meet increasing demand for natural gas in the Mexico, which is shifting its focus to the cleaner-burning fuel.
The company expects to own and operate five pipeline systems, with approximately $3bn invested by 2018 in Mexico.
The pipelines projects include in-service Tamazunchale and Guadalajara pipeline systems as well as the Topolobampo and Mazatlan pipeline projects which are under construction in the country.
Recently, the Obama administration rejected TransCanada’s proposed $8bn Keystone XL pipeline project from Canada to the US citing that it would not serve the national interest of the US.
The company is now considering options including filing a new application to receive a Presidential Permit for the cross border pipeline project.
Image: TransCanada expects to operate five pipeline systems by 2018 in Mexico. Phot: courtesy of supakitmod/ FreeDigitalPhotos.net.
