CHICAGO TransCanada Corp.s Mexican subsidiary has been awarded a $400-million contract to build, own and operate a pipeline in Mexico just days after receiving the green light for a separate $1-billion pipeline in the country, the energy company said.
Calgary, Alberta-based TransCanada said the Mazatlan Pipeline project is expected run natural gas 257 miles from El Oro to Mazatlan in the Mexican state of Sinaloa.
The 24-inch diameter pipeline is expected to be in service by the fourth quarter of 2016 and interconnect with the $1-billion Topolobampo Pipeline project that TransCanada said it was awarded last week.
The Topolobampo Pipeline is expected to run natural gas 329 miles from El Encino in Mexicos Chihuahua state to Topolobampo in Sinaloa, TransCanada said. The 30-inch diameter pipeline is expected to be in service in the third quarter of 2016, it added.
Both projects were awarded to TransCanada subsidiary Transportadora de Gas Natural del Noroeste by Mexicos federal power company, TransCanada said.
"As Mexico makes the transitions from fuel oil to clean-burning natural gas, there will be additional opportunities for TransCanada," company president and chief executive officer Russ Girling said in a statement.
TransCanada also noted that it expects to break ground soon on its Tamazunchale Pipeline Extension project. The $500-million, 146-mile extension is expected to move gas through a combination of 30- and 36-inch-diameter line pipe (amm.com, Feb. 28).
TransCanada also operates the $320-million, 193-mile Guadalajara Pipeline in Mexico (amm.com, May 17, 2009).