Mexico's state-owned power company Comision Federal de Electricidad (CFE) has chosen TransCanada Corp. to build, own, and operate the Tula-Villa de Reyes natural gas pipeline in Mexico.
TransCanada expects to invest $550 million in the 36-in. OD, 420-km pipeline and anticipates an in-service date of early 2018. Construction is supported by a 25-year gas transportation service contract for 886 MMcfd.
The pipeline will begin in Tula, Hidalgo, and terminate in Villa de Reyes, San Luis Potosi, transporting gas to power generation facilities in the central portion of the country. The project will interconnect with TransCanada's Tamazunchale and Tuxpan-Tula pipelines as well as with other transporters in the region.
The Tula-Villa de Reyes pipeline is the most recent addition to TransCanada's expanding portfolio in Mexico. TransCanada was awarded the Tuxpan-Tula pipeline in November (OGJ Online, Nov. 11, 2015). By 2018, TransCanada will be operating six major gas pipeline systems in Mexico representing an overall investment of $3.6 billion.