TransCanada to build Tula – Villa de Reyes Pipeline in Mexico

June 2016

TransCanada Corp. announced that it has been chosen to build, own and operate the Tula – Villa de Reyes pipeline in Mexico. Construction of the pipeline is supported by a 25-year natural gas transportation service contract for 886 MM cf/d with the Comisión Federal de Electricidad (CFE), Mexico’s state-owned power company.

TransCanada expects to invest approximately $550 million in the 36-inch diameter, 261-mile pipeline and anticipates an in-service date of early 2018. The pipeline will begin in Tula in the state of Hidalgo, and terminate in Villa de Reyes, in the state of San Luis Potosí, transporting natural gas to power generation facilities in the Central region 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 2015.