TransCanada, as part of the company's concerted effort to bolster its presence in the North American continent, will spend some $550 million on the construction of a 420-km natural gas pipeline in Mexico.

The pipeline would be one of six major gas pipeline systems TransCanada operates in the country, supplying Mexico’s state-owned power company with nearly 900 million cubic feet of natural gas a day.

The new line would begin in Tula, in the central state of Hidalgo north of Mexico City, and travel northwest to Villa de Reyes in the state of San Luis Potosi, transporting natural gas to power-generation facilities there.

Russ Girling, TransCanada's President and CEO, says “the Tula – Villa de Reyes Pipeline complements our existing pipeline network in Mexico and furthers our strategy of owning and operating highly contracted and regulated assets that generate stable and predictable earnings and cash flow streams."