Calgary-based pipeline giant TransCanada Corp. has announced plans to begin a series of natural gas pipeline projects in Mexico,totaling roughly $1.4 billion. TransCanada made the announcements after receiving permission to build,own and operate the pipelines from the Comision Federal de Electricidad,or CFE,which is Mexico’s federal power company.
“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,” TransCanada President and CEO Russ Girling told the Canadian Press. “This award is another example of TransCanada’s commitment to help develop Mexico’s energy infrastructure in a sustainable and cost-efficient manner.”
One of the new natural gas pipelines will reportedly be located on Mexico real estate that runs from El Encino to Topolobampo and will intersect with a second that will run from El Oro to Mazatlan. TransCanada also built,owns and operates the Guadalajara and Tamazunchale natural gas pipelines in central Mexico and will soon break ground on an extension of the Tamazunchale pipeline.
“We are pleased to be working with the government of Mexico on new natural gas infrastructure that will bring its cleaner-burning natural gas to businesses and residents,” Girling added.
The 530-kilometre pipeline that will run from El Encino to Topolobampo will have a capacity of moving 670 million cubic feet per day of natural gas,while the El Oro to Mazatlan pipeline will reportedly have a capacity of 202 million cubic feet each day. According to TransCanada,the pipelines are both supported by a 25-year natural gas transportation service contract with CFE.
The new pipelines in Mexico are expected to be operational by the fourth quarter of 2016 and will help to complete the corporation’s significant holdings,which tap into virtually all of North America’s major gas suppliers. This includes more than 24,000 kilometers of natural gas pipelines in Alberta and more than 3,500 kilometers of crude oil in the Keystone Pipeline.