TransCanada Corporation will invest $500 million in the Tamazunchale – El Sauz Pipeline Extension in Mexico.
TransCanada will build and operate this pipeline with a 25 years natural gas transportation service contract by the Comisión Federal de Electricidad (CFE), Mexico‘s state-owned power company.
The project is designed with following key figures:
- 235 kilometers (146 miles) long
- capacity of 630 million cubic feet a day (MMCf/d).
- a combination of 30- and 36-inch-diameter pipe
- 37 megawatts of installed compression.
The pipeline will originate at the terminus of TransCanada‘s existing Tamazunchale Pipeline in the state of San Luis Potosi and extend through the states of Hidalgo and Queretaro, where it will connect with Mexico’s National Pipeline System and serve a CFE combined-cycle power generating facility near El Sauz, Queretaro.
The Mexican government recently announced a number of current and expected natural gas infrastructure projects for the country. This infrastructure allows Mexico to meet growing demand and supports greenhouse gas reduction initiatives, allowing access to natural gas as a replacement fuel for heavy oil.
TransCanada intends to continue to pursue future development opportunities in Mexico.
TransCanada anticipates the completion on the first quarter 2014.
