TransCanada Wins Contract to Build Mexican Pipeline

TransCanada Corporation (TSX:TRP,NYSE:TRP) announced that its Mexican subsidiary, Transportadora de Gas Natural del Noroeste, has been awarded the contract to build, own and operate the El Encino-to-Topolobampo Pipeline in Mexico.

As quoted in the press release:

TransCanada expects to invest approximately US$1 billion in the Topolobampo Pipeline project, which is supported by a 25-year natural gas transportation service contract with the CFE. The 30-inch diameter pipeline will be approximately 530 kilometres (329 miles) long and have contracted capacity of 670 million cubic feet per day. It is anticipated the project will be in-service in the third quarter of 2016.

TransCanada’s President and CEO, Russ Girling, said:

This project is a response to a CFE invitation to bid. As Mexico makes the transition from fuel oil to cleaner-burning natural gas, there will be additional opportunities for TransCanada. These opportunities are consistent with our strategy to build long life infrastructure, underpinned with long-term contracts.

To view the whole press release, click here.