TransCanada Corporation has been chosen to build, own and operate the Tuxpan-Tula Pipeline in Mexico. Construction of the pipeline is supported by a 25-year natural gas transportation service contract with the Comisión Federal de Electricidad (CFE), Mexico’s state owned power company.
TransCanada expects to invest approximately USD $ 500 million in the 36 inch diameter pipeline, and anticipates an in-service date in the fourth quarter of 2017.
The pipeline will be approximately 250 km (155 miles) long with a contracted production capacity of 886 million cubic feet a day (MMcf/d).
The pipeline will originate in Tuxpan, Veracruz, and extend through the states of Puebla and Hidalgo, supplying natural gas to CFE combined-cycle power generating facilities in each of those jurisdictions, along with the central and western regions of Mexico. The pipeline will serve new power generation facilities as well as those currently operating with fuel oil which will be converted to natural gas as their base fuel. Construction is expected to start in 2016.