Spectra Energy subsidiary wins $1.5bn gas pipeline project in Mexico

WCN Editorial Team 15 Jun 2016 NORTH AMERICA ENERGY & UTILITIES

Spectra Energy subsidiary Valley Crossing Pipeline has secured a contract from the Comisión Federal de Electricidad (CFE) to build the $1.5bn Nueces-to-Brownsville natural gas pipeline.


The 168-mile intrastate natural gas pipeline project will be used to transport natural gas — starting in 2018 — to meet Mexico's growing power generation needs.

Under the contract, Valley Crossing will build and operate a header system of more than 5bn cb ft per day near the Agua Dulce Hub in Nueces County, Texas, as well as a 2.6bn cb ft per day pipeline originating at that header and extending to Brownsville, Texas. There, the pipeline will connect with the Sur de Texas-Tuxpan pipeline, which will extend into Mexico.

Spectra Energy’s president of US Transmission and Storage Bill Yardley said: "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.

"Successfully securing this project adds to our already-strong asset portfolio, connects us to another key demand-pull market, and brings us closer to our goal of securing $35bn in capital expansion projects by the end of this decade, with approximately $20bn either in execution or in service since 2013."

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