TransCanada JV bags Mexico deal

MEXICO CITY, June 14, 2016 – TransCanada and joint venture partner IEnova have been awarded a build, own and operate contract for a 42-inch subsea natural gas pipeline in Mexico, the companies announced late on Monday. The deal is valued at USD 2.1 billion.

Dubbed the Sur de Texas-Tuxpan pipeline, the line will originate near the southern Texan town of Brownsville and extend to the Tuxpan municipality in the Mexican state of Veracruz, a distance of some 800 km. The project is underpinned by a 25-year, 73.6-mcm-per-day (2.6 bcf) transportation services contract with Mexico’s Comisión Federal de Electricidad.

Commenting on the contract award, TransCanada chief executive Russ Girling labelled the pipeline “one of the most important natural gas infrastructure projects” in Mexico. The company will be responsible for 60% of the work, with Sempra affiliate IEnova holding a share of 40% in the project. The partners, working under the IMG label, are targeting a 2018 completion date. Upon finalisation of the work, the pipeline will interconnect with the Altamira system and the Tuxpan-Tula conduit.

For more oil and gas news and features on Mexico, click here.

Read our latest insights on: