CFE lets TransCanada another Mexican gas pipeline contract

Mexico’s federal power company Comision Federal de Electricidad (CFE) has awarded TransCanada Corp.’s Mexican subsidiary Transportadora de Gas Natural del Noroeste the contract to build, own, and operate the El Oro-to-Mazatlan Pipeline (Mazatlan Pipeline) in Mexico. The 24-in. OD pipeline will extend 257 miles and have contracted capacity of 202 MMcfd.

TransCanada expects the pipeline to enter service fourth-quarter 2016. It will interconnect with the El Encino-to-Topolobampo Pipeline, which was awarded last week to TransCanada (OGJ Online, Nov. 2, 2012). New 25-year natural gas transportation service contracts with the CFE support the two pipelines.

TransCanada built, owns, and operates the Guadalajara and Tamazunchale natural gas pipelines in central Mexico and will soon break ground on a Tamazunchale Pipeline Extension (OGJ Online, Feb. 24, 2012).

The Mazatlan Pipeline will cost roughly $400 million.

Contact Christopher E. Smith at chriss@ogjonline.com.

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