Spectra Energy and TransCanada have been awarded a $3.6 billion contract from the Mexican government to build a 1070-km natural gas pipeline from Corpus Christi to the port city of Tuxpan on the Gulf of Mexico. The pipeline, carrying shale gas from the Eagle Ford rock formation, will ultimately connect with Mexican power plants to help meet the country's growing demand for energy.

Spectra will build the $1.5 billion portion of the pipeline from Nueces County to the Mexican border at Brownsville. From there TransCanada, in a joint venture with a Mexican subsidiary of San Diego-based Sempra Energy, will continue constructing the $2.1 billion portion of the newly - named Sur de Texas pipeline from the border into Tuxpan.

“Spectra Energy is pleased to have secured the bid to build and operate this critical infrastructure, which will provide clean-burning and reliable natural gas to support Mexico as its electric generators shift away from fuel oil and imported LNG,” said Bill Yardley, Spectra’s president of U.S. transmission and storage.

Yardley's comments were reinforced by Russ Girling, TransCanada's president and CEO: “We are extremely pleased to further our growth plans in Mexico with one of the most important natural gas infrastructure projects for that country’s future."