TransCanada has secured a major $500 million contract to build, own and operate (BOO) the Tuxpan-Tula Pipeline in Mexico. The award complements previous TransCanada agreements to build and operate gas pipelines 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 US$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 kilometres (155 miles) long and have contracted capacity of 886 million cubic feet a day (MMcf/d).

The award complements previous TransCanada agreements with Mexico to build, own and operate gas pipeline systems: the Tamazunchale and Guadalajara pipeline systems are both owned and operated by TransCanada and the company is completing construction of the Topolobampo and Mazatlán pipelines. By 2018, with the Tuxpan-Tula Pipeline, TransCanada will have five major pipeline systems, with approximately US$3 billion invested in Mexico.

"We will continue to pursue additional opportunities for new energy infrastructure projects in Mexico going forward," says Russ Girling, TransCanada's president and chief executive officer.