TransCanada's Mexican subsidiary, Transportadora de Gas Natural del Noroeste, was awarded the contract to build, own and operate the El Oro-to-Mazatlan Pipeline (Mazatlan Pipeline) in Mexico, following a successful bid to the Comisión Federal de Electricidad (CFE), Mexico’s federal power company.
The Mazatlan Pipeline project, with an estimated investment of approximately US$400m by TransCanada, will begin at El Oro and end in Mazatlan, in the state of Sinaloa. The 413 km-long pipeline will have contracted capacity of 202 mcf/d (nearly 2.1 bcm/year). The pipeline is expected to be in service in the fourth quarter of 2016. It will interconnect with the El Encino-to-Topolobampo Pipeline (Topolobampo Pipeline) that TransCanada was awarded the contract to build, own and operate in end-October 2012 at an estimated cost of US$1.0bn. Construction of the two new pipelines is supported by 25-year natural gas transportation service contracts with the CFE.