TransCanada lands contract for Sur de Texas-Tuxpan Pipeline

August 2016

TransCanada Corp. announced that its joint venture with IEnova, Infraestructura Marina del Golfo (IMG), has been chosen to build, own and operate the $2.1 billion Sur de Texas-Tuxpan natural gas pipeline in Mexico. The project will be supported by a 25-year natural gas transportation service contract for 2.6 Bcf/d with the Comisión Federal de Electricidad (CFE), Mexico’s state-owned power company.

TransCanada expects to invest approximately $1.3 billion in the partnership to construct the 42-inch diameter, 497-mile pipeline and anticipates an in-service date of late 2018. The pipeline will begin offshore in the Gulf of Mexico, at the border point near Brownsville, Texas and end in Tuxpan, in the state of Veracruz.

In addition to a connection with CENAGAS’s pipeline system in Altamira, the project will interconnect with TransCanada’s Tamazunchale and Tuxpan-Tula pipelines as well as with other transporters in the region.

The Sur de Texas-Tuxpan Pipeline is the most recent addition to TransCanada’s expanding portfolio in Mexico. In the last eight months, TransCanada was awarded the Tuxpan-Tula and the Tula-Villa de Reyes pipelines. Construction activities for these two pipelines are already in progress with the expectation of achieving in-service dates of 2018.