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CFE awards two gas pipeline contracts in Mexico

Mexico's state-owned power utility, the Federal Electricity Commission (Comision Federal de Electricidad, CFE), has selected Infraestructura Marina del Golfo (IMG), a joint venture of TransCanada and Sempra's subsidiary IEnova to build, own and operate the US$2.1bn Sur de Texas-Tuxpan gas pipeline in Mexico.

The 800 km-long gas pipeline project will deliver 2.6 bcf/d (nearly 27 bcm/year) of gas, from offshore gas fields in the Gulf of Mexico, at the border point near Brownsville, Texas to Tuxpan, in the state of Veracruz. TransCanada will develop, operate and own 60% of this project, with IEnova owning 40%. Commissioning is expected in late 2018.

In addition, CFE has selected Valley Crossing Pipeline, a subsidiary of US energy group Spectra Energy, to build a 270 km gas pipeline project. Valley Crossing will construct and operate a header system of more than 5 bcf/d (51.5 bcm/year) near the Agua Dulce Hub in Nueces County, Texas, as well as a 2.6 Bcf/d pipeline originating at that header and extending to Brownsville, Texas (United States). There, the pipeline will connect with the Sur de Texas – Tuxpan pipeline, which will extend into Mexico. Commissioning is expected in 2018.