TransCanada Awarded Contract to Build $500M Natural Gas Pipeline Extension in Mexico

TransCanada Corporation

today announced that it will build, own and operate the Tamazunchale Pipeline Extension in Mexico. Construction of the pipeline is supported by the award of a 25-year natural gas transportation service contract by the Comision Federal de Electricidad, Mexico's state-owned power company. TransCanada expects to invest approximately US$500 million in the pipeline and anticipates an in-service date in the first quarter of 2014. The project will be 235 kilometers (146 miles) long and have contracted capacity of 630 million cubic feet a day (MMCf/d). The pipeline will use a combination of 30- and 36-inch-diameter pipe and have 37 megawatts of installed compression.