The Infraestructura Marina del Golfo (IMG) joint venture has secured a contract to design and build a $2.1bn natural gas pipeline in Mexico.
Under the 25-year contract — awarded by the Comision Federal de Electricidad (CFE) — the JV between Infraestructura Energética Nova (IEnova) and TransCanada will build, own and operate an approximately 800km gas pipeline.
IMG will be responsible for implementing the project, including permitting, acquiring land and rights of way, engineering, procurement, construction, financing, operation and maintenance.
The 42-inch diameter ‘Sur de Texas-Tuxpan’ pipeline will have a daily capacity of 2.6bn cb ft.
The pipeline will be used to transport natural gas from a point near Brownsville, Texas, to Tuxpan, Veracruz, and will provide natural gas to new and existing CFE power plants that currently use fuel oil.
TransCanada’s president and CEO Russ Girling said: "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.
"This new project brings our footprint of existing assets and projects in development in Mexico to more than $5bn, all underpinned by 25-year agreements with Mexico's state power company."
The pipeline is expected to be operational in late 2018.
* Data provided by Timetric's Construction Intelligence Center.