Guadalajara construction | TransCanadaTransportadora de Gas Natural del Noroeste, a subsidiary of TransCanada, has entered a $1 billion deal with Mexico's Comisión Federal de Electricidad (CFE) to build, own and operate the El Encino-to-Topolobampo pipeline, the Calgary-based company announced on 1 November 2012.
The Topolobampo pipeline will be 30-inches in diameter and span 329 miles (530 km), starting from El Encino, in Chihuahua state, crossing the Sierra Madre Occidental and ending in Topolobampo, in Sinaloa. TransCanada said the pipeline will also interconnect with other pipelines that will be built separately through bid processes by CFE.
The pipeline is supported by a 25-year natural gas transportation service contract and will have a carry capacity of 670MMcf/d. TransCanada expects to the pipeline to begin service 3Q 2016. 'Mexico's government is engaged in a comprehensive plan to expand the nation's electrical grid and generating capacity, and much of that generation will be natural gas-fired,' said Russ Girling, TransCanada's president and chief executive officer.
'As Mexico makes the transition from fuel oil to cleaner-burning natural gas, there will be additional opportunities for TransCanada,' Girling said. 'These opportunities are consistent with our strategy to build long life infrastructure, underpinned with long-term contracts.'
TransCanada has built and currently operates both the Guadalajara and Tamazunchale pipelines. The company said it expects to start construction on a Tamazunchale pipeline extension soon.
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